U.S. stock futures are lower to start the day after Washington ordered a shutdown of the Chinese consulate in Houston. The move is seen as an escalation between the two largest economies in the world. Also, United Airlines (UAL) warned travel demand would remain suppressed until there was a widespread treatment of vaccine for COVID-19. After the market closes today, Tesla Inc (TSLA) and Microsoft Corp (MSFT) will announce Q2 earnings, and investors will be looking for more information on the health of the U.S. economy.
The S&P 500 closed at 3257.30 well above the breakout level at 3233.13 on higher volume, so we feel the breakout is stable. Potential support could now come in at the old resistance level at 3233.13, and possibly resistance could come in at 3333.18. The RSI index has also moved higher in support of the breakout, and the index still has room to move up before hitting the overbought zone. Any selling could possibly be seen as a buying opportunity by investors.
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.
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