S&P 500 futures are slightly lower after the weekly jobless claims came in lower than expected this morning. The Labor Department reported 884,000 vs. estimates of 850,000, and continuing claims totaled 13.85 million, which was an increase of 93,000 from last week. Investors are faced with the possibility of a slowing economy and trying to determine if the tech stock selling is possible over before today’s trading begins.
The S&P 500 rallied past resistance at 3399.54 only to sell-off late in the day to close at 3398.96. The rally did not come with increased volume, and only 2,500,034,560 shares were traded on the day. The RSI index did move higher and moved back above the 50 level, closing at 50.24. A potential new resistance level was formed at 3424.77, and potential support could still come in at 3366.84, the bottom of yesterday’s trading range, and then at 3349.63. So far, the rebound looks solid, but there is not enough evidence to declare the selling is done, and the buyers are back in charge.
We are currently long-term bullish and short-term bearish.
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.
New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. An increasing (decreasing) trend suggests a deteriorating (improving) labor market. The four-week moving average of new claims smooths out weekly volatility