U.S. stock futures are higher after a vital inflation gauge was reported in line with expectations. The core personal consumption expenditures price index rose 3.4% as expected in May, the fastest rate of increase since April of 1992. The report also showed that consumer spending was flat vs. the estimate of a 0.4% increase, and personal income declined 2.4% less than the estimate of 2.7%. However, those reports had been inflated primarily by government stimulus checks.
The S&P 500 closed at a new all-time high of 4266.49 on Thursday. The index has now rallied 2.5% off the 6/18/2021 low of 4164.40 after also trading below the 50-day moving average. Potential support could now come in at 4257.16 and possibly at 4238.04. The impressive rally has us back to a short-term bullish stance.
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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