Wall Street is set for a higher open to start the week as technology and energy stocks are higher in pre-market trading. Stocks that benefit from the opening of the U.S. economy also gained in early trading. Investors appear to be in a “buy the dip” mood after the S&P 500 sold off by 4% at one point before a swift reversal. Meanwhile, the U.S. 10 year treasury yield was at 1.62%, which shows, at this time, inflation may not be increasing as fast as expected.
The S&P 500 traded near resistance at 4191.31, but selling came in late in the day, closing lower at 4155.86. A failure at the resistance level was expected after two wide-ranging trading days. The index is now in a position to break through current resistance, and we feel that could potentially happen today. RSI also moved sideways and is also in a position to move higher with the S&P 500 today.
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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