U.S. stock futures are set to open higher to start the week after markets experienced the steepest weekly loss since March. The morning rally is coming despite England announcing a stay-at-home order to fight the coronavirus, and the U.S. continues to experience a rise in new virus cases. However, markets could be in a wait and see mood until the Presidential election is concluded on Tuesday night.
The S&P 500 sold down to potential support at 3229.01 and rallied late in the day to close at 3269.69 on Friday. The trading came with volume of 2,984,976,384, and the RSI index closed at 37.05. We feel the test and hold of the support level is a good sign the recent selling is possibly done, and the market can now bounce back for an oversold condition. A substantial rally on above-average volume would be needed to confirm a new uptrend. Potential resistance could potentially come in at 3326.44.
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
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.