U.S. stock futures were are higher in early morning trading a day after the S&P 500 reached a 10% decline from the recent record highs. Later today investors will be watching Fed Chair Jerome Powell’s testimony on the CARES Act before the House Financial Services Committee. The Chairman is expected to suggest the need for more fiscal stimulus to add a U.S. economy that has been weakened by the ongoing coronavirus pandemic.
The S&P 500 sold off down to 3229.10 and then rallied late in the day to close at 3281.06. The trading came on above-average volume at 2.970,704,896, and the RSI index moved into oversold territory closing at 39.25. The RSI index is now at its lowest level since the massive selling back in March, where it moved down to 24.52. The potential S&P 500 resistance level at 3279.32 held, so we know that sellers are still lurking around that level. We will remain short term bearish due to a large amount of uncertainty the markets are dealing with at this time.
We are currently long-term bullish and short-term bearish.
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.