U.S. stock futures are higher as recent economic data appeared to ease the fears of higher inflation. The U.S. jobless claims were reported at 444,000, and that has investor encouraged the April jobs report was a blip and not a long-term change in direction. Also, the Philadelphia Federal Reserve reported business activity fell to 31.5 from 50.2 in April. The report was more evidence that economic growth may not accelerate too fast and keep inflation tame this year.
The S&P 500 rallied past resistance at 4128.59 to close higher at 4159.12. The volume was lower, with only 2,147,379,072 shares traded. So, we did get a follow-through day, but the volume is still not enough to declare a new uptrend. However, RSI did turn higher, moving through the middle line closing at 52.74 in support of the rally. Potential resistance is now at 4191.31, and a breakthrough of that level could indicate the bulls are back in charge. The likely scenario today is a low-volume sideways trading action to consolidate the two-day rally.
We are currently long-term bullish and short-term cautious.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJFS
Windsor Wealth Planners & Strategist
Futures trading is speculative, leveraged, and involves substantial risks. Investing always involves risk, including the loss of principal, and futures trading could present additional risk based on underlying commodities investments.
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.
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