U.S. stock futures are lower this morning on escalating tensions between the U.S. and Iran. President Trump warned there are 52 Iranian targets that might be attacked if there are any attacks on U.S. assets. The President also threatened to impose economic sanctions on Iraq if they force U.S. troops out of the country. Investors could continue to be cautious of a prolonged conflict within the Middle East region.
The S&P 500 closed at 3234.85 on Friday and is now in the middle of the trading range. The RSI index moved below the 70 level, which can cause sellers to come into the markets. Potential support will now become 3212.03, and we feel this level should hold on the first attempt to move below it. The index is still in a strong uptrend, and any selling could become an excellent buying opportunity for new money.
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.