Wall Street is set for a flat open as the markets are set to close out a positive first six months and a positive second quarter of the year. Meanwhile, ADP reported that private payrolls increased at a faster pace than predicted. There was an increase of 692,000 that was well above the 550,000 estimates but below the 886,000 report for May. The most significant growth came in the leisure and hospitality sector, with an increase of 332,000. In addition, education and health services increased by 123,000, transportation and utilities rose by 62,000, and professional, and business services increased b7 53,000.
The S&P 500 closed at another new all-time high of 4291.80 and has closed higher five out of the last seven days. The term “melt up” is now being thrown around to describe the recent uptrend along with ” it can’t keep going higher.” Volume has trended lower the last two days, so we feel some caution is warranted. However, we think any pullback would be a potential buying opportunity because it is clear there is an uptrend in place. Possible support will remain at 4721.28, and we see that level being tested soon.
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
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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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The national employment report from Automated Data Processing Inc. is computed from ADP records that represent approximately 400,000 U.S. business clients and approximately 23 million U.S. employees working in all private industrial sectors. ADP contracted with Moody’s Analytics to compute a monthly report that would ultimately help to predict monthly nonfarm payrolls from the Bureau of Labor Statistic’s employment situation. The ADP report