Wall Street is set for a choppy open on Thursday after posting a week-to-date gain of 10.5%. Investors got the closely watched weekly jobless claim report that came in at 5.25 million jobs lost, and an estimate that last week’s claims were as high as 9.29 million jobs lost. Some economist are now forecasting a much lower GDP for the second quarter and the potential of a 14% unemployment rate. Fears of an impending recession or an economy already in a recession could affect trading today.
The S&P 500 closed at 2749.98 on Wednesday, which was above a resistance level at 2711.33. The RSI index moved above the critical 50 level in support of the up move, but the volume was below average. Potential resistance could now be at 2882.59, and support is still potentially at 2749.98 and then possibly at 2637.01. Today’s trading action could be choppy due to a holiday-shortened trading week. We are encouraged by the trading action, which has changed our short-term stance to short term bullish.
We are currently long-term bullish and short-term bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Windsor Wealth Planners & Strategist
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.