Wall Street is set for a higher open, and the S&P 500 could achieve a new all-time high when trading begins. Rising inflation is still a concern, along with the Fed potentially starting to tapper its bond program. However, investors are hoping the Fed will keep its inflation target low and keep easy monetary policies in place. The consumer price index report will be released on Thursday and is expected to be 4.7% on an annual basis.
The S&P 500 tried to breakout out past the all-time high of 4238.04 but failed, closing lower at 4226.52. Trading volume came in at only 1,748,923,520, which helps explain why there was no breakout. Also, the RSI was flat, closing at 59.72. So, the market took a break to consolidate the recent gains off the 6/3/2021 low of 4167.93. We feel a potential new high will occur soon, and a possible new uptrend will be in place.
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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