Moring Brief
Headline News:
Wall Street is set for a significant drop at the open of today’s trading as the sell-off in large tech companies continues. Also, the tightening of gasoline supplies in parts of the U.S. has investors in a bearish mood. The Colonial pipeline is still shut down, which is causing a spike in gas prices in the Southeast. A possible rise in interest rates and inflation could halt economic growth is another fear weighing on markets and could affect trading today. The yield on the 10-year Treasury moved higher to 1.64%, adding to the inflation spike fears.
Markets:
The S&P 500 sold off last in the day after moving above resistance at 4218.78 and closed lower at 4188.43. The index is now just above potential support, and we feel there will now be more downside. There was a pick-up in volume with 2,313,680,128 shares traded, and RSI moved lower in support of the selling closing at 57.86. We feel that the potential support at 4128.59 will be tested and possibly broken today. A sell-off in major technology stocks along with the recent gas shortage has once again been proven to be a significant market disrupter. Also, the fact that we have gone from a new uptrend to a possible new downtrend shows how economic events can change market dynamics quickly.
We are currently long-term bullish and short-term bullish.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJFS
Partner, DJWMG
Windsor Wealth Planners & Strategist
Futures trading is speculative, leveraged, and involves substantial risks. Investing always involves risk, including the loss of principal, and futures trading could present additional risk based on underlying commodities investments.
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.
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