U.S. markets are set to open lower after the Federal Reserve left rates unchanged and was upbeat about the U.S. economy. Investors will now focus on the Brexit vote today in the United Kingdom. Also, European Central Bank President Christine Lagarde is expected to keep interest rates unchanged. The Producers Price Index will be reported today and is expected to show continued demand in November.
The S&P 500 was higher on Wednesday with only average volume and closed at 3141. The trading was the third day in a row of sideways action, and the index has now formed a new smaller trading range of 3142.102-3150.60. RSI moved higher to close at 61.54 to support the buying on the day. We continue to like the trading action, and we continue to feel it will possibly lead to another new all-time high.
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.