Wall Street is set for a flat open as investors wait for the release of more vital economic reports. Today at 10 a.m., the Conference Board’s consumer confidence index will be released, and economists expect a rise to 119 for the month of May. Investors are also closely monitoring the increase in new COVID-19 cases across Asia. Meanwhile, the possibility of higher interest rates due to a rise in inflation is also a concern.
The S&P 500 rallied to another new all-time closing high of 4290.61 on Monday. The trading came with a pick-up in volume with 1,986,163,712 shares traded, and RSI also continued to march higher, closing at 63.71. The index has now gained 3% since the 6/18/21 low of 4,204.78. We still believe that a new base is needed; however, the index is not yet overbought and could potentially move higher. Potential resistance could now come in at 4292.14, and possible support remains at 4721.28.
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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