U.S. stock futures are slightly higher as investors wait on fourth-quarter earnings from large blue-chip companies. The Federal Reserve starts a two-day meeting this morning and is not expected to announce any new policy changes on Wednesday. New talk of “bubbles” in stocks has investors concerned a pullback could happen soon. However, upcoming forecasts from corporate American could possibly help calm those fears.
The S&P 500 had a wide-ranging day that saw a low of 3797.16 and a high of 3859.25. The index managed to close at another all-time high of 3855.36. The trading came with above-average volume of 2,782,315,008, and RSI did move higher to close at 66.65. We feel the mid-day rally into the close is a possible sign the recent uptrend will continue because we know buyers have become very active. Potential resistance could come in at 3856.76, but we don’t think this level will not hold for long before another new high is potentially achieved.
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.