U.S. stock futures were flat this morning as traders have become more cautious ahead of the FOMC policy statement later today. The Fed is expected to leave rates unchanged today, but investors have high hopes of a rate cut announcement.
The S&P moved above resistance at 2910.61 and closed at 2917.75, which is a breakout and possibly the start of a new leg higher. The day came on higher than average volume, and the RSI index turned up for the first time this week. We are now expecting the index to, possibly, make a move up to the old high of 2923.73 set on 5/1/2019 soon.
Housing starts in the U.S. came in at 1.269 million, which was above the consensus expectations but below May’s report of 1.281 million. The Redbook report came out with a 5.4% increase, and it was above the May report of an increase of 5.0%. Both numbers point to a growing economy and could influence the Fed’s thinking on a rate cut.
We are currently long term bullish and short bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Partner, Windsor Wealth
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, onions 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.
A housing start is registered at the start of construction of a new building intended primarily as a residential building. The start of construction is defined as the beginning of excavation of the foundation for the building
A weekly measure of comparable store sales at chain stores, discounters, and department stores. Redbook tracks week-to-week change, month-to-date change, and year-on-year change with the latter the most closely watched reading. The report offers early indications on ex-auto ex-gas retail sales.