Headline News: U.S. stock futures are higher after comments from Federal Reserve officials calmed inflation fears. Fed vice chair Richard Clarida said he has faith in the central bank’s ability to engineer a “soft landing” if prices continue to push past what has been expected. Meanwhile, the yield on the 10-year treasury has moved lower by 14 basis points, also calming the fast-rising inflation fears. Markets: The S&P 500 rallied above resistance at 4191.31 only to sell off late closing at 4188.13. The selling was not intense as volume came in at only 2,109,542,400 shares traded. Also, RSI moved sideways, closing at 55.67. So, we feel a small base might form at this level before an attempt at the all-time high. The index has rallied over 3.5% off the 4061.41 low on 5/15/2021, and a consolidation of those gains here would be constructive. We are currently long-term bullish and short-term cautious. 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… Read More
Headline News: Wall Street is set for a higher open after bond yields moved lower, propping up beaten-down mega-cap technology stocks. The yield on the U.S. 10-year bond moved to a two-week low, and Amazon(AMZN), Apple(AAPL), and Alphabet(GOOGL) were all up between 0.4%-1% in the pre-market. The lower bond yields help take the pressure off growth stocks whose cash flows are discounted at higher bond yields. Later today, the U.S. consumer confidence report will be released and is expected to move lower after a 14-month high in April. Markets: The S&P 500 moved past resistance at 4191.31, closing higher at 4197.05. However, the trading came on much lower volume of 1,841,332,224 shares traded. So, we can’t claim there is a new uptrend just yet due to a lack of overall participation yesterday. The RSI did move higher in support of the up move, closing at 56.92 and solidly above the middle line. The index needs a high volume day and another close above 4191.31 soon to keep the recent rally going. We are currently long-term bullish and short-term cautious. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS Partner, DJWMG Windsor Wealth… Read More
Headline News: Wall Street is set for a higher open to start the week as technology and energy stocks are higher in pre-market trading. Stocks that benefit from the opening of the U.S. economy also gained in early trading. Investors appear to be in a “buy the dip” mood after the S&P 500 sold off by 4% at one point before a swift reversal. Meanwhile, the U.S. 10 year treasury yield was at 1.62%, which shows, at this time, inflation may not be increasing as fast as expected. Markets: The S&P 500 traded near resistance at 4191.31, but selling came in late in the day, closing lower at 4155.86. A failure at the resistance level was expected after two wide-ranging trading days. The index is now in a position to break through current resistance, and we feel that could potentially happen today. RSI also moved sideways and is also in a position to move higher with the S&P 500 today. We are currently long-term bullish and short-term cautious. 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.… Read More
Headline News: U.S. stock futures are higher as recent economic data appeared to ease the fears of higher inflation. The U.S. jobless claims were reported at 444,000, and that has investor encouraged the April jobs report was a blip and not a long-term change in direction. Also, the Philadelphia Federal Reserve reported business activity fell to 31.5 from 50.2 in April. The report was more evidence that economic growth may not accelerate too fast and keep inflation tame this year. Markets: The S&P 500 rallied past resistance at 4128.59 to close higher at 4159.12. The volume was lower, with only 2,147,379,072 shares traded. So, we did get a follow-through day, but the volume is still not enough to declare a new uptrend. However, RSI did turn higher, moving through the middle line closing at 52.74 in support of the rally. Potential resistance is now at 4191.31, and a breakthrough of that level could indicate the bulls are back in charge. The likely scenario today is a low-volume sideways trading action to consolidate the two-day rally. We are currently long-term bullish and short-term cautious. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS Partner,… Read More
Headline News: Wall Street is set for a lower open after yesterday’s FOMC minutes showed the Fed discussed tapering off bond purchases. The report showed policymakers were also discussing easing the crisis support if the U.S. economy continued to show strong growth. Meanwhile, the number of Americans filing for unemployment claims fell to 444,000 for the week ending May 15th. The report was the lowest number since mid-March 2020 and shows job growth has picked up this year. Markets: The S&P 500 sold off down near support at 4056.88 but rallied strongly to finish the day higher at 4115.68. The trading with 2,401,767,680 shares traded which was a substantial increase over yesterday’s trading. RSI could only manage a lateral move, so, for now, the rally is suspect until there is a follow-through day on above-average volume. The index has now put in a double bottom, leading to dip buyers possible coming back into the markets. Potential resistance could come in at 4128.59, and a move above that level would be very constructive for the index. We are currently long-term bullish and short-term cautious. 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 investors continue to worry about inflation, equity valuations, and a top in economic growth. Also, news that Senate Republicans and President Biden are still far apart on a new infrastructure deal is another concern. Meanwhile, later today, the FOMC April meeting minutes will be released, potentially giving guidance on the health of the U.S. economy. Markets: The S&P 500 sold off late in the day, closing at 4127.83, just below support at 4128.59. The volume did pick up with 2,310,848,256 shares traded, and RSI dove below the middle lien closing at 49.00. The heavy selling is a concern, and the 50-day moving average at 4076.46 is now in play as potential support. The index needs to rally today back above 4128.59, or more selling could come in and push it lower. Another wide range down day would negate last week’s rally, and the 4056.88 level would be the next possible support. We are currently long-term bullish and short-term cautious. 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 to start the week after the S&P 500 fell 4% at one point last week. Investors appear to be leary of rising inflation and high stock valuations. Also, the Fed’s minutes will be released on Wednesday, giving more information on the potential for a rise in inflation. First-quarter earnings will wrap up this week, and so far, 86% of S&P 500 companies have posted positive earnings. Markets: The S&P 500 rallied for the second day in a row and closed higher at 4173.85. Over the last two days, the volume has trended lower, with Friday’s trading coming in with only 1,895,455,232 shares traded. The RSI index did move higher, moving through the middle line to close at 54.46. We feel the market requires rest, and there could be some selling today. However, that would be normal and constructive after two wide-ranging days. A small base at these levels could set up another rally soon. Potential resistance could come in at 4191.31, and possible support could come in at 4128.59. We are currently long-term bullish and short-term cautious. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager, RJFS… Read More
Headline News: U.S. stock futures are higher after a better than expected weekly jobless claims report was released. Initial claims for state unemployment benefits totaled a seasonally adjusted 473,000 compared to 507,000 the prior week. The report shows employers were able to retain employees during the growing labor shortage. There are 8.1 million job openings and nearly 10 million people officially unemployed in the U.S. Meanwhile, the Producer’s price index for final demand rose 0.6%, which was another sign inflation is creeping into the U.S. economy. Markets: The S&P 500 moved below support at 4128.59, and then the more important level at 4068.31. The index closed at 4063.04, with volume coming in at 2,398,136,832. The RSI index moved below the 50 level, closing at 41.05 in support of the heavy selling. The index must now hold the critical 50-day moving average that is now at 4094.94. If that potential support is broken, the next possible support level could become 3983.87. However, the S&P 500 is now near the 38.2% retracement level that typically brings in some buyers. We are currently long-term bullish and short-term cautious. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager,… Read More
Headline News: Wall Street is set for another lower open after U.S. inflation grew at the fastest rate in 12 years. The Consumer Price index rose 4.2% year over year, and the monthly gain was 0.8%. Also, energy prices rose 25% year over year as the national average for gasoline hit $3 a gallon. However, inflation a year ago was at a historic low this time last year due to the U.S. economy being locked down. So, expectations for inflation by leading economist remains at 2% by the end of the year. Markets: The S&P 500 traded in a wide range and moved below two support levels on Tuesday. However, buying did come in, and the index rallied to close flat at 4152.10. There was a pick-up in volume with 2,429,803,776 shares traded, and RSI continued to dive lower, closing at 52.01. We are now moving to a short-term cautious stance due to the probability of more selling being high. Potential support remains at 4128.59 and then 4068.31, and we feel those levels might be tested soon. We are currently long-term bullish and short-term cautious. John N. Lilly III CPFA Accredited Portfolio Management Advisor℠ Accredited Asset Management Specialist℠ Portfolio Manager,… Read More
Markets: The S&P 500 is now testing potential support at 4128.59. You can see on the chart a small tail has formed, which shows some buying has come in at that level. However, if that level breaks, the next possible support level could then become 4068.31. So, caution is warranted today. 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… Read More
