U.S. stock futures are set to open higher on hopes the Federal Reserve will keep interest low for the rest of the year. The FOMC will release its policy statement at 2 p.m. ET, followed by Fed Chairman Jerome Powell’s news briefing. Both are expected to present a more robust outlook for the U.S. economy. Also providing enthusiasm is FedEx Corp (FDX), reported a bigger-than-expected quarterly profit, and the stock jumped 9.2% in premarket trading.
The S&P 500 tried to breach resistance at 3413.14 but could not hold that level and closed lower at 3401.20. We feel the index had now formed the base we were hoping for and is in a trading range of 3349.63-3425.55. If the index can trade in this range for a few days, there is a chance a potential new uptrend could form after moving out of the base. The RSI index moved above the important 50 level to close higher at 51.32. We are encouraged by the trading action but remain short bearish until a breakout with an above-average trading day.
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.