U.S. stock futures are lower on renewed worries about U.S.-China trade tensions, and continued growth in coronavirus cases. Washington has begun to eliminate Hong Kong’s special trading status under U.S. law, and China quickly said it would retaliate. Federal Reserve Chairman Jerome Powell will give a speech at 12:30 p.m. ET and is expected to announce the U.S. economic future was “extraordinarily uncertain.”
The S&P 500 moved back above the critical 200-day moving average at 3021.16 and closed at 3053.24. The RSI index also moved higher in support of the move to close at 49.82. However, volume was only average, which makes the rebound suspect until there is another follow-through day on above-average volume. Potential resistance could come in at 3083.11, and possible support could come in at 2969.66.
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.