S&P 500 futures are higher after Apple (AAPL), Amazon (AMZN), Facebook (FB), and Alphabet (GOOG) all beat top and bottom-line estimates for Q2 earnings. The reports are offsetting the uncertainty surrounding the coronavirus relief bill negotiations in Washington. Also, consumer spending increased by 5.6% in June which was the second straight month of increases. The Q2 earnings season is at the halfway point, with 82% of companies beating estimates, and investors appear to be in a bullish mood to end the week.
The S&P 500 traded down to 3204 Thursday just above potential support at 3200.95 and rallied to close at 3246.22 above resistance at 3233.13. The index remains in a broad base that is forming at the top of the trading range, and we still feel the base will be a continuation pattern for the current uptrend. The RSI index is also in a trading range that adds support to the potential for a move to new highs.
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.