U.S. markets are set to open lower after a deadly virus outbreak in China, and a weak economic outlook from the IMF stalled the recent stock market rally. Chinese officials confirmed the coronavirus virus took six lives and that it can spread between humans. The news has raised fears of a possible global pandemic. Also, the IMF report said a slowdown in global growth appears to have bottomed, but there is no rebound in sight. The international firm also trimmed its global growth forecast for 2020 and 2021.
The S&P 500 closed at another all-time high at 3329.62 on Friday, and volume was better than average for the first time this year. The RSI index is now in the overbought zone at 76.57 an extreme not seen since the middle of December. Potential support will now be at 3294.25, and we feel this we possibly be strong support if any selling comes into the markets. We will remain bullish, and we expect any selling to be meet with potential immediate buying near support.
We are currently long-term bullish and short-term bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Dominguez & Jones Wealth Management Group
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.
The International Monetary Fund (IMF), is an international organization headquartered in Washington, D.C., consisting of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world while periodically depending on World Bank for its resources