U.S. stock futures were lower to start the day after several weak earnings reports from large blue-chip companies. 3M (MMM) missed estimates for quarterly profit and revenue, and the stock was down 3% pre-market. McDonald’s (MCD) was down 2% after the company announced revenue fell 30%. Investors were also evaluating a coronavirus relief plan from Senate Republicans. Later today, the Federal Reserve will begin a two-day meeting in which they are expected to maintain its near-zero interest rate policy.
The S&P 500 rallied on Monday to a close at 3233.13, which was above resistance at 3233.13. The rally came on lower volume while the RSI moved higher to close at 59.03. The mixed message from the indicators is a concern, but for now, we expect the uptrend to potential continues this week. The next possible resistance level could now come in a 3279.23, and potential support could come in at 3233.13 and then 3189.13.
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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