U.S. stock futures are higher to start the day after the release of the June jobs report this morning. The Labor Department reported nonfarm payrolls increased 850,000, and the unemployment rate increased to 5.9%. Also, the current jobless rate has been understated by people misclassifying themselves as being “employed but absent from work.” There are now 9.3 million job openings which is a record number. Average hourly earnings rose 0.3% after increasing by 0.4% in May.
The S&P 500 closed at another all-time high at 4319.94 on Thursday and is set to open higher again this morning. The index moved out of the two-day base and trading channel, but volume was tame, coming in at 1,798,347,776. The lack of volume should be a concern, but that has not mattered in this new uptrend. Also, RSI moved up to 67.93, just under the overbought level. So, the index can still potentially move higher from these levels. Potential resistance could come in at 4320.06, and possible support could come in at 4302.03.
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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