U.S. stock futures are higher to start the week despite lawmakers failing to agree on a coronavirus relief bill over the weekend. Also, Secretary of State Pompeo announced actions against a “broad array” fo Chinese-owned software deemed a threat in the coming days. President Trump did allow Microsoft (MSFT) and others to continue talks to acquire Chinese owned Tiktok, and continued positive Q2 earnings results have investors in a bullish mood.
The S&P 500 traded below support at 3233.13 early but rallied higher late in the day to close at 3271.12. The move came with heavy volume, and the index is now close to potential resistance, and new possible breakout, at 3279.23. The RSI index is still in a trading range after closing at 61.03. So, we were very encouraged by the trading action last week! Markets look set to test and possible breakout of the trading range high at 3279.23 sometime 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
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.
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