U.S. stock futures are higher in early trading despite the first reported case of Omicron in the United States. Entertainment and leisure stocks were higher in the pre-market, with Boeing (BA), Royal Caribbean (RCL), and MGM Resorts (MGM) all higher by 2%. Meanwhile, Fed Chari Jerome Powell told Congress on Wednesday that the “economy is very strong and inflation pressure are higher. It is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, which we announced at the November meeting, perhaps a few months sooner.”
The S&P 500 moved below the 50-day moving average and closed lower at 4513.04 with volume of 3,044,670,208. The vast two-day increase in volume shows investors are now very concerned and want to hold safer investments. Also, the volatility index moved higher and is now near the 1/25/21 high of 37.51. The move below the 50-day average was surprising and has driven us to a short-term bearish stance for now. The next potential support level could not come in at 4465.40.
We are currently Intermediate-term bullish and short-term bearish.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJFS
Windsor Wealth Planners & Strategist
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The Cboe Volatility Index (VIX) is a real-time index that represents the market’s expectations for the relative strength of near-term price changes of the S&P 500 index (SPX). Because it is derived from the prices of SPX index options with near-term expiration dates, it generates a 30-day forward projection of volatility. Volatility, or how fast prices change, is often seen as a way to gauge market sentiment, and in particular the degree of fear among market participants