U.S. stock futures are set to open higher amid hopes of more stimulus and improving economic data. The upbeat mood is despite a rise in the number of coronavirus cases along with with some major cites imposing new restrictions. This week the economic reports will include employment, consumer confidence, and manufacturing data for June. Investors will be watching the reports closely for signs that the U.S. economy continues to recover after a slow down earlier this year.
The S&P 500 closed at 3009.05 on Friday below the critical 200-day moving average at 3020.94. The volume was well above average, and the RSI index moved lower to close at 45.65. We moved to a short-term bearish stance due to the trading action, and we will be looking for buying with large volume before we change to bullish. Potential support could come in at the 50-day moving average at 2980.07 if the selling continues.
We are currently long-term bullish and short-term bearish.
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.