U.S. stock futures are slightly higher despite continuing concerns about the rising number of coronavirus cases. Economists worldwide are leary that a potential second wave could slow down the U.S. and global economies.
The S&P 500 sold off on below support at 3155.53.01 and closed at 3145.32, and volume was again below average. The RSI index also turned lower to close at 56.51. We feel the selling was normal profit-taking after the index moved 6% higher off the 6/29/2020 low of 2999.74. The next potential support level could come in at 3115.01, and possible resistance could not come back in at 3155.53. It would be healthy for the index to trade sideways in a trading range for a few days, and then the index could make a potential move to the hight of 3199.22 made on 6/8/2020.
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.