U.S. stock futures are substantially higher after the release of the first-quarter GDP. Gross Domestic Product, the sum of all goods and services produced in the U.S., rose to 6.4%. Consumers, who account for 68.2% of the economy, increased spending by 10.7%, and durable good spending jumped 41.4%. The report shows an expanding economy that still has room to grow as the nation opens back up after the COVID-19 pandemic.
The S&P 500 traded sideways for the third day in a row, just under resistance at 4191.31. That was the fifth test of the resistance level, and we feel the next test will be a breakout to new highs. The volume has risen the last three days, and the RSI index has traded sideways as well. The GDP report released earlier this morning should be enough to ignite a potential rally that moves the index past the current base and start a possible new uptrend.
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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