U.S. stock market futures moved higher Wednesday morning on reports of a medical breakthrough in the fight against the coronavirus. A Chinese university reportedly found an effective drug to treat people with the virus. However, the World Health Organization played down the report saying, ” there are no known effective therapeutics against the 2019-nCov (virus).” Also, China is expected to add more fiscal stimulus to their economy this week, which could help their economy after the fallout from the outbreak epidemic.
The S&P 500 moved above a critical resistance level at 3280.61 and closed much higher at 3297.59. The RSI index also moved higher in support of the up move to close at 56.91. However, volume was only average and not near the amount of the significant selling day seen on 1/31/2020. The index is now back in an extensive trading range of 3280.61-3333.18, and we feel the market will now need to consolidate the recent gains.
We are currently long-term bullish and short-term bearish.
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 WHO has multiple leadership priorities that include providing access to universal health care, preventing communicable diseases and researching factors that affect health. The Organization’s purpose is to direct and coordinate health for its signatory nations, provide leadership and determine paths for research.