Wall Street is set for a lower open after the Group of Seven (G7) agreed to a global corporate tax rate of 15%. The move is an effort to crack down on corporate tax avoidance by the largest technology companies. However, the deal will still need to be negotiated over the next few months. Investors were encouraged by the weaker than expected jobs report on Friday that showed inflation might not be rapidly rising.
The S&P 500 traded near the all-time high of 4238.04 but did not break through, closing at 4229.89 on Friday. The trading volume was low, with only 1,869,269,888 shares traded. RSI did move higher in support, closing at 60.41. The breakout came after a seven-day base had formed, so the index is in good shape to potentially move higher soon. There is also no overhead resistance to contend with if buying continues. Potential support will now be at 4209.52.
We are currently long-term bullish and short-term bullish.
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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