U.S. stock futures are higher after the most robust job growth in seven months was released last Friday. The U.S. nonfarm payrolls came in at 916,000 for March, and February was revised upward to 468,000. The unemployment rate fell to 6% from 6.2%. Investors will now be watching future economic reports to confirm a strong economy and a continuation in job growth. Also, the start of corporate earnings season could be a boost to markets if companies show profitability.
The S&P 500 closed at a new all-time high at 4019.87 and is now in rare air with no overhead resistance. However, volume was extremely low, with only 2,169,587,712, probably due to a three-day weekend. So, today’s trading action is vital in determining if a new uptrend is potentially now in place. A follow-through day on the above-average volume would solidify a new uptrend. Potential support will remain at the 3981.04 level if selling does come in today.
We are currently long-term bullish and short-term cautious.
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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