Daily Commentary
Headline News:
U.S. stock markets were lower on Monday as investors await news on U.S.-China trade talks later this week. Any good news could potentially send prices higher and vice versa on bad news. Interest rates are also back in the news as there is now a 76% chance of a 25-basis point cut by the Federal Reserve later this month. Also, third-quarter earnings will start soon, and they too could be market movers if the trade war has affected corporate profits.
Markets:
The S&P 500 rallied for the second day in a row on Friday to close at 2952.0. The close was above resistance at 2945.50 and above the 50-day moving average at 2942.36. The RSI index also moved higher to confirm the rally and is close to moving above the 50 level. The one problem was again the volume, which was below average, so we are still cautious until heavy buying comes in with heavy volume. The index now has potential support at 2921.86, and we feel that level should hold this week.
We are currently long term bullish and short term bearish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Partner, Windsor Wealth
Windsor Wealth
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.