U.S. markets are selling off this morning with S&P 500 futures down of 54 points to start the week. China plans to impose $60 billion worth of tariffs on 5,140 products produced in the U.S. Also, the yield between the three-month treasury and the 10-year inverted for the second time in a week. Traders are, at this point, moving into safe assets to protect against further losses.
The S&P 500 finished the week strong with a good move off support at 2792.81. Our hope is for the low of Friday, 2825.39, to act as support to prevent possible more selling of stocks. As of 8:49 am S&P 500 futures were at 2832.70, so at this point, the low of Friday is still in play to act as support. If that level should be breached, we are looking for possible support at 2792.81 and then 2787.82. Our thoughts are that equity markets should be avoided for new buys until there is a resolution to the trade war.
We are currently long term bullish with 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, onions 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.