U.S. stock futures are higher after reassurances from Washington that the Phase 1 trade agreement with China was still intact. Also, encouraging business data out of Europe has encouraged investors this morning. The better than expected surveys our of Europe has economist hopeful that today’s release of U.S. business activity will also be upbeat. The U.S. manufacturing report and the PMI report are both due out later today. The two reports will be informative about the current health of the U.S. economy.
The S&P 500 traded down to support at 3083.11 but rallied to close at 3117.86 in the middle of the current trading range. The RSI index closed slightly higher at 56.86, but volume was well below average. The lack of volume makes the late-day rally suspect, and we are hoping for a follow-through day on above-average volume today. Potential resistance will remain at 3155.53, and potential support remains at 3083.11.
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, RJ
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 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.