U.S. futures are lower to start the week on concerns of increased COVID-19 cases in major cities. The U.S. Centers for Disease and Prevention warned cases and deaths could rise in the fall and winter. Investors are now looking more stimulus out of Washington as some states are considering closing down again to halt the rising cases. However, economic progress, a potential coronavirus vaccine, and a strong start to the Q2 earnings season have helped keep U.S. equities markets moving higher the last three weeks.
The S&P 500 attempted to breach the 3233.13 resistance level but failed to breakout and closes at 32245.73 on Friday. The index is now in a small trading range just below potential resistance, which could lead to a possible breakout this week if volume should increase. The RSI index remains in the bullish range and is supporting a potential breakout. If the sellers come back in the old support line at 3181.49 should be the first level of support.
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.