U.S. stock futures are lower to start the day on fears of a continued rise in coronavirus cases around the nation. Texas, California, and Arizona reported daily records of new cases late yesterday. Dr. Anthony Fauci said the next two weeks could be critical in containing the outbreak while testifying before congress. Investors appear to be concerned the rise of new cases could slow down the recovery of the U.S. economy
The S&P 500 made another attempt to break through resistance at 3155.53 only to close 3131.29 on Tuesday. The index is still in a trading range, and the RSI index moved slightly higher to close at 58.03. The last two trading days have come with below-average volume, so we remain bullish but cautious until a breakout with substantial volume occurs. Potential resistance remains at 3155.53, and possible support remains at 3083.11.
We are currently long-term bullish and short-term bullish.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Windsor Wealth Planners & Strategist
Futures trading is speculative, leveraged, and involves substantial risks. Investing always involves risk, including the loss of principal, and futures trading could present additional risk based on underlying commodities investments.
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and changes of price movements.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, opinions, or forecast provided herein will prove to be correct. “The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk, and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets.