Wall Street is set to open lower on Tuesday after a mixed bag of earnings results. Merck (MRK) was higher by 2.7% premarket along with Pfizer (PFE) up 3.3% premarket after reporting strong earnings. Alphabet Inc (GOOGL) missed earnings estimates and was off 1.1% in premarket trading. So far, Q3 earnings have been better than expected, with over 78% of the 204 companies that have reported beating expectations.
The S&P 500 broke out past old all-time high set on 7/26/2019 of 3027.98 to close at a new all-time high of 3039.42. The move came with average volume, so the index will need a follow-through day soon with above-average volume to confirm a new uptrend. There is now potential resistance at 3044.08, which was yesterday’s high of the day, and possible resistance at 3050.00 that is a trend line dating back to 2018. The RSI is not overbought on the daily, weekly, and monthly chart, so the potential new uptrend has support.
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.