U.S. equity futures are lower this morning, extending the loses after Tuesdays impeachment inquiry announcement. The S&P had its most significant percentage drop in a month as President Trump also hardened his stance on the China trade dispute. A lower than expected Consumer Confidence number also added uncertainty to a volatile trading day. Today’s economic reports include New Home Sales and MBA Mortgage Applications.
The S&P 500 sold off on Tuesday to close at 2966.60 well below support that was at 2975.06. Potential support will now become 2957.36 which the index was briefly trading at late in the day. The RSI index also moved lower but held above the 50 level to close at 50.33. We still believe markets can move higher from these levels, but a move below potential support could bring in new sellers to move markets lower.
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.