U.S. stock futures are lower after a mixed bag of results from large tech companies. Microsoft (MSFT) met quarterly sales expectations and beat profit estimates, but the stock was lower by 2% in pre-market trading. Alphabet Inc (GOOGL) reported a record profit and a $50 billion share buyback program, which had the stock higher by 5% this morning. Meanwhile, the 10-year Treasury rose to its highest yield, 1.63%, in two weeks, so trading could be mixed once again today.
The S&P 500 traded in another narrow range just under potential resistance closing at 4186.72. The past two days have been constructive for a possible new closing all-time high. RSI has also moved sideways, which is also a good sign for the index is ready to break out. The resistance at 4191.31 has now been tested four times, and each time more sellers go away, making way for buyers to push through that level.
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.
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