U.S. stock futures are lower as tensions between the United States and China heated up once again. President Trump’s move to force China-owned Tiktok into a sale of its U.S operations caused a sharp rebuke from Beijing. So far, the friction between the two nations has been overshadowed by the Coronavirus, but an escalation could harm a global economic recovery. Domestically, President Trump said he is considering executive orders to prevent tentative evictions. He is also considering a lower payroll tax if Congress can not pass a new coronavirus relief bill.
The S&P 500 broke out of the 3233.13-3279.33 trading range and closed at 3294.61 on Monday. The RSI index also moved out of a trading range in support of the breakout. However, volume was lower than the trading on Friday, and we will need to see a follow through with higher volume soon. Potential resistance could now come in at 3337.33, and possible support could now become the old high at 3279.32.
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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