Daily Commentary
Headline News:
U.S. stock futures are higher despite another large number of unemployment claims reported for the week ended July 4th. Initial claims for benefits totaled a seasonally adjusted 1.314 million, down from 1.413 million from the prior week. The report suggests the U.S. economy remains weak even though there has been an increase in job growth. Also, the rise in coronavirus cases has economists worried about the current state of the U.S. economy.
Markets:
The S&P 500 moved above resistance at 3155.53 and closed higher at 3169.94. The RSI index also moved higher to close at 58.56, but the volume was once again below average. The lack of volume is a concern we will be watching closely. Potential support could now come in at 3155.53 and then lower at 3115.01. Possible resistance could now come in at 3181.49 if the uptrend should continue this week.
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
Partner, DJWMG
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.