Morning Brief
Headline News:
U.S. stock futures are lower after the Federal Reserve moved up their timeline for rate hikes at Wednesday’s FOMC meeting. The FOMC signaled two rate hikes in 2023 and raised its inflation target for 2021 to 3.4% for the year. However, Fed Chari Jerome Powell said the projections for future rate hikes should be “taken with a grain of salt” and reiterated that he believes that inflation is transitory. Meanwhile, the number of Americans filing new unemployment claims increased last week for the first time in more than a month. Initial claims for state unemployment benefits totaled a seasonally adjusted 412,000 for the week ended June 12.
Markets:
The S&P 500 sold off after the FOMC meeting announcement and traded down to old support at 4197.59. The index did rally off that level, closing lower at 4223.70. There was a pick-up in the trading volume with 2,217,254,912 shares traded, and RSI closed lower at 55.44. Today, old support will now become new potential resistance, with the first level coming in at 4238.04. Possible support will remain at 4197.59, and a move below that level could bring in another round of substantial selling. So, the market needs to rally with above-average today to prevent a new downtrend from forming.
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
Partner, DJWMG
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.
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