Wall Street was set to open lower this morning after weak earnings announcements from Caterpillar (CAT) and Texas Instruments (TXN). Investors are once again concerned about a possible global slow down due to the U.S.- China trade tensions. Still, the Q3 earnings season has been upbeat, with 80 of the 100 companies beat analyst estimates, according to Refinitiv data.
The S&P 500 briefly moved above resistance at 3003.28 but sold off late in the day to close at 2995.99. The index is now back in the eight-day trading range of 2963.07-3003.28, and we feel the sideways trading could possibly continue until after the Q3 earnings season is complete. The RSI index is still bullish but did turn lower yesterday to close at 55.94.
We are currently long term bullish and short term bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Partner, 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.
This is not a recommendation to purchase or sell the stocks of the companies mentioned.
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