U.S. stock futures are high this morning as traders turned optimistic about a trade deal between the U.S. and China. Home Depot (HD) cut it’s full-year sales forecast and was down 4.5% premarket. Lowe’s Cos Inc (LOW) and Target (TGT) will announce results today, and the earnings could give important details about retailers going into the end of the year.
The S&P 500 moved to another all-time high at 3132.00 on Monday, but the index closed at 3122.03. There is now a small trading range of 3102.61-3132 forming, and we feel that a few days of inside the range could lead to more new highs. Monday’s trading did come with good volume, which was the follow-through day we were looking for to happen. RSI is now well into the overbought range at 74.37, and that could slow down trading for a day or two.
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.