Headline News: U.S. stock futures are set to open lower by at least 1% after a spike in global COVID-19 cases raised concerns about economic growth. The delta variant has spread among the unvaccinated, and there the U.S. has averaged 30,000 new cases a day for the last seven days. Also, more worries about a rapid rise in U.S. inflation even as the economy continues to open back up could slow down consumer spending. Markets: We have been concerned a pullback was in the works due to the recent trading action of the S&P 500. The S&P 500 closed below support at 329.79 and, as of this morning, is set to open lower at 4271.75. So, this would bring in potential support at 4257.16 and then the 50-day moving average at 4239.17. We also feel the 50-day moving average will be strong support, and any pullback to that level would be a possible buying opportunity. For today, we think caution is warranted and will not be looking to make any new buys. We are currently long-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 higher open after U.S. retail sales increased in June and increased expectations the economy grew in the second quarter. The report showed a 0.6% increase, and May was revised lower to show sales falling at 1.7%. Later today, the University of Michigan Consumer Sentiment for July will be released along with May’s business inventories. Markets: The S&P 500 closed at 4360.03, which was just below the first level of support at 4361.88. The trading came with a pick-up in volume with 1,989,714,816 shares traded, and RSI also moved lower, closing at 62.65. The next level of potential support is still at 4329.79, and we feel that level will be tested soon. We are currently long-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, 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… Read More
Headline News: It appears a lot of the good news has already been priced into stocks. U.S. stock futures are lower even as second-quarter earnings continued to beat expectations. Also, the yield on the 10- year Treasury continues to move lower, which is raising fears about a global recovery as Covid-19 cases are rising. Meanwhile, the number of new unemployment claims fell last week, but worker shortages are still hampering businesses ‘ efforts to hire people to meet demand. Initial claims for unemployment benefits fell 26,000 to a seasonally adjusted 360,000 for the week ended July 10th. Markets: The S&P 500 traded in a channel for the third day in a row and is now forming a base. However, the Advance/Decline line moved below an upward trend line despite the index briefly trading at a new intraday all-time high. The negative divergence is typically a warning more selling could be potentially coming soon. If so, possible support is still at 4361.88, but that level has been tested twice and is weak. The next level could possibly come in at 4329.79 if any selling comes into the markets. We are currently long-term bullish and short-term bearish. John N. Lilly III CPFA… Read More
Headline News: U.S. stock futures are higher after Federal Reserve Chairman Jerome Powell is set to say the central bank was still ways off from altering its easy policies. The remarks will come today in the Chariman’s semiannual testimony before Congress, and he is also expected to state he expects inflation to moderate later in the year. Also, second-quarter earnings have started, and investors will be watching the reports closely for signs U.S companies are still financially strong. Markets: The S&P tried and failed to break out above resistance at 4386.68 and closed lower at 4369.68. Hopefully, the index will now form a new base before attempting to achieve another new high. If, so potential support could now come in at 4361.88, and possible resistance is now at 4386.68. The Advance/Decline line is close to breaking an uptrend line, so we feel there is a chance the index is still in danger of a potential short-term pullback soon. We are currently long-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, leveraged, and involves substantial risks. Investing… Read More
Headline News: U.S. stock futures are lower after new data showed consumer prices rose in June. The CPI increased by 0.9%, while the core CPI rose 4.5% year over year for the month. That was the most significant increase in 13 years for the month of June, which is further evidence the economic recovery is gaining momentum. A rise in vaccinations, low interest rates, and continued government stimulus is increasing consumer demand, straining the supply chain, and raising prices in the U.S. economy. Markets: The S&P 500 closed at another new all-time high at4384.63, and the index has moved 2.2% higher in three days. However, during that three-day rally, the volume has been lower each day, and yesterday had only 1,705,771,904 shares that were traded. We will continue to be concerned about the lack of volume because we feel that is a sign of selective buying. Today, potential resistance could come in at 4386.68, and possible support will remain at 4361.88. We are currently long-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, leveraged, and… Read More
Headline News: U.S. stock futures are lower as concerns about an uptick in coronavirus cased continue to grow. Australia will reportedly extend its lockdown in Sydney, and South Korea will enforce stricter social distancing rules. Meanwhile, the second-quarter earnings-reporting season will begin tomorrow, and investors will want to see if the earnings can match equity valuations after the rally in the S&P 500. Markets: The S&P 500 closed at a new all-time high at 4369.55 Friday, but volume was low with only 1,790,340,224 shares traded. Possible resistance could now come in at 4371.60 if the market opened higher today. Potential support could now come in at 4361.88 and then 4329.79, and we feel the second level will hold if tested today. The lack of volume is a concern, and some profit-taking would be expected after such a broad-ranging trading day. We are currently long-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, leveraged, and involves substantial risks. Investing always involves risk, including the loss of principal, and futures trading could present additional risk based on underlying… Read More
Headline News: Wall Street is set to open lower today as fears rise that the continued spread of the COVID-19 variant will slow the U.S. economy’s growth. The FOMC meeting notes released on Wednesday showed the Fed feels the U.S recovery has a long way to go. However, Atlanta Fed President Raphael Bostic warned that a spike in the virus could hamper the economic recovery. Also, the 10-year yield fell by another four basis points to 1.28% and is another sign investors are now in a risk-off mood. Markets: The S&P 500 closed at yet another all-time new high at 4358.13 on Wednesday. The RSI index moved back into the overbought territory after closing at 71.19. This morning, the S&P 500 is down 1.29% in pre-market trading and is set to open under the support level at 4300.73. The next potential support level could then possibly come in at 4274.67. There is also possible support at the Fibonacci 50% retracement level at 4262.93, and we feel the index will hold above this level for today. If the selling becomes intense, there is a possible strong support level at 4257.16. We are moving to a short-term bearish stance today. We are… Read More
Headline News: U.S. stock futures are flat to start the day, and the yield on the 10-yr Treasury moved lower down to 1.34% this morning. The decrease in interest rates comes as expectations for inflation to improve and that growth rates are decelerating. Investors appear to now favor growth stocks again and, in particular large technology stocks. Apple (AAPL) and Amazon (AMZN) are both up double digits compared to the S&P 500, up only 2.8% in the past month. Later today, the minutes from the June 15-16 FOMC meeting will be released, and they will be scrutinized for any comments about when the Fed could start tapering asset purchases. Markets: The S&P 500 sold off below current support at 4326.60 only to rally late in the day and close at 4344.00. There was an increase in volume with 2,071,081,472 shares traded, and RSI moved out of the oversold zone closing at 69. We feel there is the potential for more selling, and yesterday may have been a shot across the bow. If so, potential support will remain at 4326.60 and then 4300.73. However, we also still believe any selling would present a possible buying opportunity due to an uptrend still… Read More
Headline News: U.S. stock futures are set for a lower open after Chinese regulators ordered Didi Global Inc (DIDI) to take down its app, which comes days after its $4.4 billion listings on the New York Stock Exchange. The Cyberspace Administration of China (CAC) investigated the company for its handling of customer’s data. The crackdown has also affected other China-based company’s stocks and global stocks as a whole. Meanwhile, investors will be waiting for the release of the Fed’s policy minutes due out on Wednesday. Markets: The S&P 500 closed at another new all-time high at 4352.00 on Friday. The trading came with a broad range day, but volume came in lower with only 1,532,160,256 shares traded. The index has gained 4.5% since the 6/18/2021 low of 4164.40, but the volume has trended lower during that run-up. RSI finally moved into the overbought zone closing at 72. So, we feel some caution is warranted over the next few days, but any pullback would potentially be seen as a buy-the-dip opportunity for traders. Possible support could now come in at 4326.60, and we see that level possibly being tested in the next few days. We are currently long-term bullish and short-term… Read More
Headline News: U.S. stock futures are higher to start the day after the release of the June jobs report this morning. The Labor Department reported nonfarm payrolls increased 850,000, and the unemployment rate increased to 5.9%. Also, the current jobless rate has been understated by people misclassifying themselves as being “employed but absent from work.” There are now 9.3 million job openings which is a record number. Average hourly earnings rose 0.3% after increasing by 0.4% in May. Markets: The S&P 500 closed at another all-time high at 4319.94 on Thursday and is set to open higher again this morning. The index moved out of the two-day base and trading channel, but volume was tame, coming in at 1,798,347,776. The lack of volume should be a concern, but that has not mattered in this new uptrend. Also, RSI moved up to 67.93, just under the overbought level. So, the index can still potentially move higher from these levels. Potential resistance could come in at 4320.06, and possible support could come in at 4302.03. 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… Read More
