U.S. stock futures were lower after President Trump announced bans on U.S. transactions with Chinese owners of messaging app WeChat and video sharting app Tiktok. The move is seen as an escalation of tension with China over the future of the global tech industry. However, the futures cut losses after the nonfarm payrolls increased by 1.76 million vs. an estimated 1.6 million by economists for July. The unemployment rate came in at 10.2% down from 11.1% in June.
The S&P 500 moved higher for the fourth day in a row and closed at 3349.16, which was above resistance at 3337.33. The volume over those four days has been only average while the RSI index has moved higher to close at 68.70 just below the overbought zone. We feel there could be some potential profit-taking to close out the week, but the new uptrend has been firmly established. Any selling should be short-lived and provide an opportunity for possible new buys.
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.