Headline News: Wall Street is set to open higher a day a selloff in the S&P 500 due to fears of a global contagion from a potential collapse of China’s Evergrande, a property developer. However, the Chinese government has vowed to contain the problem before damaging the banking system. The company currently has $300 billion in debt and is struggling to meet an $83.5 million payment due on Thursday. Domestically, the Federal Reserve will begin its two-day meeting today. Chairman Powell will give an update on Wednesday and is expected to provide guidance on the future of the current bond-buying program. Markets: The S&P 500 traded lower below two crucial support levels and closed at 4357.73 on Monday. The trading came with massive volume of 2,589,216,256, and over 90% of that was declining volume. So, we feel the selling is potentially not over, and the new, possible support level of 4289.37 could be tested. Today could see an early rally, but that rally could be sold into late in the day. The new possible resistance is now at 4367.73 and 4392.37, and those levels should be tested early, but we don’t feel the index can close above them today. We… Read More
Headline News: U.S. stock futures are set to open much lower as investors start the week with a multitude of concerns. The Federal Reserve meeting this week could see the Fed signal a slowdown in the current bond-buying program. Covid-19 cases remain high, concerns about a potential government shut down as the debt ceiling deadline approaches, and a 4% selloff in Hong Kong markets overnight have investors favoring the safety of cash to start the week. Markets: The S&P 500 closed at 4432.99, and that was below the important 50-day moving average at 4436.35. The RSI continues to dive lower in support of the selling closing at 43.57. So, we feel the break below the recent trading range could potentially bring in more selling today. The next possible support level could now come in at 4392.37, and we feel that level will be tested today. If the selling should increase the next possible level of support could come in at 43289.37. This morning the S&P 500 futures are showing an open at 4341.50. So far, the index has only pullback by 2.6% since the high on 9/2/2021. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly III… Read More
Headline News: U.S. stock futures are set to open lower as investors appear to be cautious due to new Covid cases, a Federal Reserve meeting next week, and the historical weakness for stocks in September. Later today, the University of Michigan Index of Consumer Sentiment will be released for September, showing the current state to the U.S. consumer. Markets: The S&P 500 has now formed a trading range of 4437.66-4486.87 over the last three trading days. We feel whichever side the index breaks out of next will be the potential new trend. Typically when there is a selloff and then a base, the selling continues. So, we remain cautious due to the “September” effect and the fact the index has not had a 5% correction this year. We are looking for another day of trading within the trading range to close out the week. Also, today will be a rare quadruple witching which could cause some volatility at the end of the day. 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 Quadruple witching refers to a date… Read More
Headline News: Wall Street is set for a flat open after U.S. retail sales unexpectedly increased in August. The Commerce Department reported retail sales rose 0.7%, supported by back-to-school shopping and child tax credit payments from the government. Also, the unemployment insurance weekly data showed 332,000 first-time jobless claims last week. Both reports have seemed to have eased fears of a slowdown in the U.S. economy for now, and investors will be anxious to hear from Fed Chair Jerome Powell at next week’s Federal Reserve meeting. Markets: The S&P 500 had an impressive rally on Wednesday, closing higher at 4480.70 with 2,188,080,263 shares traded. Also, the RSI index rallied and closed back above the 50 level in support of the up move. The rally was textbook after six straight days lower, and the index is now at a crossroads. If there is another rally today with above-average volume, the recent downtrend could potentially be over. A close above 4492.99 would be a sign of strength. However, a move back down to 4437.66 could possibly see the downtrend continue. So, we feel the downtrend could continue despite yesterday’s rally, and we are looking for the 50-day moving average, 4480.70, could be… Read More
Headline News: Wall Street is set to open lower open on continued fears of a slowing U.S. economy and concerns about the Federal Reserve tapering the current bond-buying program. Also, China reported retail sales, industrial production, and fixed asset investment data for August that were all lower for August. Domestically the New York Fed’s Empire Index, a measure of manufacturing in the region, came in at 34.2 for September, well ahead of the expected 18 expectations. Later today, the U.S. Industrial Production and Capacity Utilization will be reported and should provide more information on the economy’s health. Markets: The S&P 500 closed at 4443.05, just above potential support at 4437.66. The trading came on above-average volume, with 2,013,329,792 shares traded, and RSI continued to dive lower, closing at 44.68. After six straight lower closings, there is a high potential for buyers to come in and look to “buy the dip.” A test of the 50-day moving average could potentially happen today, and we feel that level will hold for now. A rally today could possibly be halted at the 4468.99 level and then another test of the 50-day moving average later this week. If the 50 day should be taken… Read More
Headline News: Wall Street is set for a higher open after the U.S. consumer prices increased at their slowest pace in six months in August. The Labor Department said its Consumer Price Index, excluding food and energy, was higher 0.1% in August. The data suggests that inflation has potentially peaked but could remain high due to supply constraints. Investors will now be focused on the Federal Reserve meeting on September 21 to see if the Fed will begin a tapering policy. Markets: The S&P 500 closed lower for the fifth day in a row after testing support at 4437.66 and then closing at4468.73. The index started the day higher but slowly moved lower throughout the day on above-average volume of 2,053,774,464. Today, the release of a better than expected CPI report could bring in the buyers, but over the last five days, any rally has been met with heavy selling. So, any rally needs to hold all day and close higher on above-average volume. We still believe a test of the 50-day moving average at 4427.23 will possibly happen soon. We are also moving to a short-term bearish stance. We are currently Intermediate-term bullish and short-term bearish. John N. Lilly… Read More
Headline News: Wall Street is set to open higher to start the week after data about Covid-19 cases appears to be trending lower. The 7- day average through Friday was 136,000 cases down, from 157,000 at the end of August. Economic reopening stocks such as Delta (DAL) and Carnival Corp (CCL) were 1% higher in pre-market trading. Meanwhile, Tuesday’s consumer price index report will be closely watched for any signs of an increase in U.S. inflation. A bigger than expected increase could see the Fed slow down the pace of the bond-buying policy at the September meeting. Markets: The S&P 500 moved closed at 4458.58 on Friday, which was below support at 4468.99. The day’s trading volume increased with 1,856,234,880 shares traded, and the RSI index moved below the 50 line closing at 47.54. Potential support could now potentially come in at 4437.66 and then the 50-day moving average at 4424.26. So far this morning, the S&P 500 futures are much higher, so potential resistance could come in 4501.71. A rally after four down days is typical, but the rally needs to hold and finish the day strong. We feel the recent selling is potentially not over, and the 50-day… Read More
Headline News: U.S. stock futures are higher after a phone call between President Biden and Chinese leader Xi Jinping has potentially eased tension between the two nations. Meanwhile, the producer price index rose 0.7% for August, indicating that inflation could remain high. Year over year, the index has risen 8.3%, the most significant increase since 2010. Also, the supply chains remain backed up due to the continuation of the COVID-19 pandemic. Markets: The S&P 500 closed at 4493.28, which was below the support level of 4493.95. There was a pick-up in volume with 1,832,259,968 shares traded, and RSI has begun to move lower, closing at 55.09. The next potential support level is now at 4468.89, and we believe the index will potentially test that soon. Today, the index could try and test possible resistance at 4513.33, but the trading could remain in a narrow range to close out the week. 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,… Read More
Headline News: Wall Street is set for another lower open on fears of slowing economic growth and a potential Federal Reserve tapering monetary policy. However, first-time filings for unemployment claims in the U.S. came in lower at 310,000. That was the lowest total since March 14th, 2020. Continuing claims also came in lower at 2.78 million, a drop of 22,000 from the previous week and also the weakest since March 14th, 2020. Markets: The S&P 500 moved below support at 4513.33 and then rallied to close 4514.07 on Wednesday. The rally came with an increase in volume, with 1,780,187,008 shares traded. We feel the rally shows there is still a “buy the dip” mentality in the markets, which could keep the index propped up. However, the current base is now in jeopardy if the 4513.33 level is broken today. If so, potential support could then become 4493.95 and then 4468.99. We feel the two possible support levels could be tested soon as we are still in a traditionally choppy time of the year for markets. 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,… Read More
Headline News: U.S. stock futures are lower as the spread of the Delta virus continues to raise concerns about a slowing domestic economy. Investors are also concerned the Federal Reserve may start to unwind the monetary stimulus that has helped the economy recover. The seasonally choppy trading for September and October may already be in play, and with the S&P 500 being up over 20% for the year without one 5% pullback so far this year. Markets: The S&P 500 tested and held support at 4513.33, with 1,804,739.840 shares traded on Tuesday. The index also tested resistance at 4537.36, showing a battle by traders on the future direction of markets. If the current support should give way, the next level could potentially come in at 4468.99. We feel there will be more sideways trading at these levels as the current base continues to grow. Today, we are looking for another test of the 4513.33 level early, and it will be important for buyers to step in at that level again. 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 &… Read More
