U.S. markets are set to open higher after positive earnings announcements from Coca-Cola (KO) and United Technologies (UTX) on Monday. Investors are again feeling good about the growth prospects of the economy for the second half of the year. European markets are higher due to positive earnings from the auto sector, and Asian markets closed higher on the day.
The S&P 500 is still in the middle of the 2963.44-3002.33 trading range after a slow day on Monday. This is the trading action we were hoping to see that could lead to an attempt at a new all-time high. The longer the index moves sideways, there is a good chance that buying pressure will continue to build. However, there is a move below the 2963.44 level; more selling should come into the markets. So, we are still short term cautious.
We are currently long term bullish and short cautious.
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.