U.S. stock futures are set for a higher open following impressive Q2 results from Lowe’s (LOW) and Target (TGT). Big-box chain Target (TGT) was higher by 8% in pre-market trading after posting online revenues that nearly tripled. Home Improvement chain Lowe’s (LOW) rose 2% in pre-market trading after beating estimates for quarterly same-store sales. Hopes of another round of fiscal stimulus has also been driving U.S. stocks higher, but Republicans and Democrats remain at odds on the legislation.
The S&P 500 moved above resistance at 3387.89 and closed at 3389.78 on Tuesday. The breakout came with below-average volume, so a new uptrend is suspect until we see a follow-through day on higher than average volume. However, the RIS index also moved higher in support of the breakout. Potential resistance could now come in at the all-time closing high at 3392.52 set back in February. Another concern is the volume trending lower during the market rally starting in late July. So, we will remain hopeful but cautious for now.
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.
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