U.S. stock futures are lower as a record number of coronavirus cases in the country has investors in a fear of more lockdowns. If so, the recent uptick in the U.S. economy could be derailed and possibly cause a recession. The government’s top infectious disease experts warned that the corona cases could double soon across the nation. Later today, figures on U.S. manufacturing activity and private payrolls will be released for June, and economists will be watching to gauge the current state of the economy.
The S&P closed at 3100.29 on Tuesday, which is just under potential resistance at 3115.01, where the selling began on 6/24/2020. The rally came with only average volume but was enough buying pressure to move us back to short term bullish. Potential support could now come in at 3083.11 if the end of the quarter selling came into the index.
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.