Headline News: U.S. stock futures are higher after a tech-focused selling took the S&P 500 lower on Monday. U.S. Treasury yields were are higher again today as concerns about a government shutdown continue to grow. President Biden said the federal government could breach the $28.4 trillion debt limit if a deal is not reached to raise the limit in the next two weeks. Meanwhile, Treasury Secretary Janet Yellen cautioned that inflation pressures will likely let up eventually, “but that doesn’t mean they’ll go away in the next several months.” Markets: The S&P 500 sold off below the support line at 4305.91 and closed lower at 4300.06. The index traded down to 4278.94, which will now become the potential next support level. The RSI index moved lower but has not moved into the oversold zone. So, the S&P 500 desperately needs to rally back above the 4305.91 and close higher today to avoid another potential heavy selling day today. This morning futures are higher, and the index is set to open higher, around 4310.50. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS Partner, DJWMG Windsor… Read More
Headline News: Wall Street is set for a lower open as an uptick in the 10- Year Treasury puts pressure back on large-cap tech stocks. The U.S. 10-year yield was up by seventeen basis points to a yield of 1.48% in pre-market trading. The yield rally has been supported by increased consumer spending, higher factory activity, and an increase in inflation growth. Investors will again be awaiting Friday’s unemployment report, which could cause the Federal Reserve to taper the bond-buying program. Markets: The S&P 500 had a rebound rally on Friday and closed higher at 4357.04. The index traded down to support at 4289.37, then had a textbook “bounce” off support, and then rallied up to resistance at 4367.73 before selling came back into the markets. So, we feel the double bottom trading pattern was a potential bottom for the recent selloff. Today, we think the index could open lower and then try to rally to, possibly, close above possible resistance at 4367.73. We are currently Intermediate-term bullish and short-term bearish. 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,… Read More
Headline News: Wall Street is set for a higher open after a report on consumer spending came in better than expected. The Commerce reported consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.8% in August. Personal income rose 0.2%, and the price index for core personal consumption expenditures was 3.6% year over year. Meanwhile, Merck (MRK) announced their oral antiviral treatment for COVID-19 reduced the risk of hospitalization or death by 50% for patients with mild or moderate cases. Markets: The S&P 500 sold off hard down to support at 4305.54 and closed at 4307.54. The trading came with 2,283,809,792 shares traded, and RSI also moved lower to close at 34.17, just above the oversold zone. Our opinion is the index tested the low on 9/20/2021 of 4305.54 and will now form a double bottom setting up a rally today. If the index can close higher, buyers could come back into the markets looking to buy the dip. If the selling should continue, there is potential strong support at the 4289.37 level; however, we feel the index will potentially rally and close higher. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly III… Read More
Headline News: Wall Street is set to open higher after the U.S. Senate reached a deal to avoid a government shutdown. A vote on the stopgap measure has been scheduled for Thursday morning and then will need to pass the House. The 10-year Treasury yield was also three basis points lower at 1.52%, which has investors looking at beaten-down large-cap stocks again this morning. Markets: The S&P moved past resistance at 4367.73 but sold off later in the day to close lower at 4359.46. The trading was tame, but the internals we monitor moved to a short-term sell signal. So, we will also move to short-term bearish, but we remain long-term bullish. At this time, we don’t see an impending bear market on the horizon and only see more choppy trading in the near term. The whipsaw action of the internals is typical for September, and caution is still warranted. Today, the index is set to open higher, and a close above 4367.73 would be encouraging. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS Partner, DJWMG Windsor Wealth Planners & Strategist Futures trading… Read More
Headline News: Wall Street is set for a higher open as investors appear to be buying the dip on beaten-down technology stocks this morning. The U.S. 10-year Treasury yield moved lower to 1.51% after topping out at 1.56% on Tuesday. Meanwhile, Treasury Secretary Janet Yellen told Congress they have until October 18 to raise or suspend the debt ceiling, and a failure to do so would have severe consequences. Markets: The S&P sold off heavy on Tuesday, closing at 4352.63 on volume of 2,407,266,304, and RSI moved below the 50 level closing at 38.11. The trading has brought a swift end to the recent uptrend, and the index has work to do in the coming days to get back on track. Potential resistance is now at 4367.73, and we are hopeful that level will be reclaimed today. If not possible, support could now come in at 4346.33 and then at 4305.91. We are currently Intermediate-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… Read More
Headline News: Wall Street is set for a lower open as a rally in bond yields has high-growth tech stocks moving lower. Shares of Alphabet (GOOGL), Microsoft (MSFT), Amazon (AMZN), Apple (AAPL), and Tesla (TSLA) were all 1% lower in pre-market trading. The ten-year Treasury yield is now at 1.5%, and rising inflation and slowing economic growth have investors seeking safe assets. Markets: The S&P 500 traded flat, closing at 4443.11 on Monday, and remains in the middle of the new 4429.97-4465.40 trading range. The index is also slightly above the important 50-day moving average at 4441.75. The trading action was constructive for a potential continuation of the recent uptrend. However, the index is lower in pre-market trading and will potentially open at 4397.75, well below possible support at 4429.97. If so, there will be a new set of technical dynamics if the index cannot rally today. We are currently Intermediate-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… Read More
Headline News: Wall Street is set for a lower open after closing out last week with a three-day rally. The 10-year Treasury yield was higher by 2% in pre-market trading and at a yield of 1.5%. Increasing economic optimism and potentially higher inflation has the yield at the highest level since June. Meanwhile, the August durable goods orders came in higher than expected, increasing by 1.8%, which was $4.6 billion in new orders. Investors will also be watching events in Washington D.C. as the government is set to shut down Thursday if a new appropriations bill is not passed. Markets: The S&P 500 finished the week strong, closing higher at 4455.48 on Friday. The index is now above the 50-day moving average at 4439.43 and looks set to form a small base in the coming days. We believe a new trading range of 4429.97-4465.40 is developing, which the index should trade inside today. We also feel the base will be short-lived before the index potentially breaks past possible support at 4465.40 and continue the recent uptrend. We are currently Intermediate-term bullish and short-term bullish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS… Read More
Headline News: This morning, U.S. stock futures are lower after China’s Evergrande failed to honor a debt payment on Thursday, and Nike (NKE) issued downside guidance because of supply chain issues. Also, uncertainty about the infrastructure bill and the debt ceiling for the U.S. have investors doubting the recent rally can continue. Markets: The S&P 500 rallied again on Thursday, closing higher at 4437.53. The RSI index moved back above the 50 level in support of the rally and is typically a bullish signal. Today, the index is set to open lower, which is typical after a two-day rally, and we feel the selling will potentially bring in new buyers next week. Possible support is now at the 50-day moving average at 4437.43, and potential resistance is at 4465.40. It is our opinion that the 50-day moving will hold today if tested. We are also moving back to a short-term bullish stance. We are currently Intermediate-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… Read More
Headline News: Wall Street is set to open higher after the Federal Reserve was upbeat on the U.S. economy and said it could begin reducing its monthly bond purchases by as soon as November while also raising its inflation expectation to 4.2% by the end of the year. The Fed also said that rates could rise quicker than expected by next year. Meanwhile, the number of Americans filing new unemployment claims rose last week. According to the Labor Department, initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 351,000 for the week of September 18. Markets: The S&P 500 rallied and closed higher at 4395.64 on Wednesday. The volume came in at 2,015,656,320, 85% of which was advancing volume. So, there is a chance the recent sell-off could potentially be done for now. If the index can close above yesterday’s high of 4416.75 with another 85% up volume day, the bulls could be back in charge. We were looking for more selling, but we are encouraged by yesterday’s trading, and we are hopeful there will be another rally today. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited… Read More
Headline News: Wall Street is set to open higher as fears of a default by China’s Evergrande have eased. The land developer company negotiated a deal with bondholders to settle interest payments on a domestic bond. Investors will now focus on the Federal Reserves’ meeting later today and Chairman Powell’s press conference after the meeting. The Fed is expected to announce a timeline of when the tapering of bond purchases will begin. Markets: The S&P 500 tested resistance at 4392.37 early in the day but then sold off to close lower at 4354.19. The fact the index could not maintain a rally after a sell-off the day before is problematic, and the potential support at 4289.37 is now in play. Possible support could also come in first at 4322.53, but the index looks like it wants to go lower. So far, this morning, the S&P 500 futures are trading at 4369.00, which sets up another test of resistance. We feel the buying will potentially not last long, and a test of possible support at 4322.53 will occur today. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio… Read More
