U.S stock futures are higher after China suggested new optimism about an economic rebound and potential new stimulus from the Federal Reserve. China’s industrial output accelerated the most in eight months, and its retail sales grew for the first time this year. The U.S. central bank could switch treasury purchases toward more long-dated debt to keep long-term yields low. If so, U.S. equity markets could continue to be attractive if rates remain at historic lows.
The S&P 500 briefly broke above resistance at 3399.54 only to sell off and close 3326.63. The RSI index moved higher to close at 49.47, and volume was modest at 2,354,435,072. Our hope is for the index to form a trading range, a new base, in the 3349.63-3399.54 zone over the next few days. If so, we feel the index could start a new uptrend and recoup some of the losses from the recent pullback last week.
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.