Stock futures are lower after U.S. federal health agencies recommended pausing the use of Johnson & Johnson’s single-dose COVID-19 shot. Meanwhile, the consumer price index for March rose 0.6% in March and 2.6% from March 2020. Core CPI, excluding food and energy, increased 0.3% and 1.5% year over year. Biden administration economists are now expecting inflation in the coming months, but they also said the increase could be temporary as the economy opens back up later this year.
On Monday, the S&P 500 traded sideways, trading in a small range after achieving another all-time intraday high. The index has now formed a short-term trading range of 4095.51 and 4131.76. The volume was again low with only 1,911,669,120 shares traded, and the RSI index remains overbought, closing at 72.00. Recently the bases that have formed have only been 2-3 days long, so we are expecting the same timeframe to apply to this new potential base. The outcome of Q1 earnings and investor’s reaction to the recent inflation numbers could be critical to the next market move.
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.
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