U.S. stock futures are lower a day after the Nasdaq benchmark closed at a record-setting high, and the S&P 500 moved higher for the fifth day in a row. News affecting the markets is that China is not fulfilling all parts of the Phase One trade deal, and the Organization for Economic and Cooperation and Development issued a negative global unemployment forecast. Also, worries that the recent rally in equity markets might not be as positive going forward due to potential upcoming weak economic reports.
The S&P 500 moved above resistance at 3155.33 to close at 3179.33 but was only below average. So, the index will need a follow-through day with an above-average volume day to confirm the breakout. The RSI index also moved higher in support of the up move and closed at 60.38. The recent rally has been impressive despite the negative news, and we feel the uptrend could continue after potential profit-taking comes into the markets. Potential support could now be at 3115.01.
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.