U.S. stock futures are higher to start the week on hopes of the Republican coronavirus relief bill out of Washington. The bill is said to be $1 trillion and will be released today at 4:30 pm. Meanwhile, gold moved to an all-time high, due to increased U.S. and China tensions, and global markets moved lower to start the week after the U.S. dollar moved lower to a 22 month low.
The S&P 500 sold off below support at 3198.59 but rallied back late in the day to close at 3215.63 on Friday. The trading came with lower volume than Thursday, but the RSI index did move lower to close at 563.45. The last two trading days have come with selling, so we think buyers could potentially return today. However, we will remain cautious and hopeful the potential support at 3198.59 is not taken out this week. If so, we feel the selling could pick up and move the index lower.
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.