U.S. stock futures are flat after posting the best weekly performance in five months last week. The agreement on President Biden’s $1.2 trillion infrastructure spending deal has investors encouraged, and investors also appear to be less concerned about possible interest rate hikes in the future. Meanwhile, the next critical economic data report will be the June jobs report released this Friday. Economists are expecting that nonfarm payrolls will increase by 683,000, well above the 559,000 increase in May.
The S&P 500 closed at another new all-time high at 4280.70 on Friday. The index has now been higher four out of the last five days, and some profit-taking may potentially come in today. Volume came in at 2,745,185,792, but the increase was due in part to a reconstruction process in the index. So, we do not know the real extent of the buying on Friday. Our hope is that a small base is formed at these levels to set up another potential move higher. If selling should come in today, we possible support could now come in at 4721.28 and then 4257.16.
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.
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