U.S. stock futures are set for a lower open after Chinese regulators ordered Didi Global Inc (DIDI) to take down its app, which comes days after its $4.4 billion listings on the New York Stock Exchange. The Cyberspace Administration of China (CAC) investigated the company for its handling of customer’s data. The crackdown has also affected other China-based company’s stocks and global stocks as a whole. Meanwhile, investors will be waiting for the release of the Fed’s policy minutes due out on Wednesday.
The S&P 500 closed at another new all-time high at 4352.00 on Friday. The trading came with a broad range day, but volume came in lower with only 1,532,160,256 shares traded. The index has gained 4.5% since the 6/18/2021 low of 4164.40, but the volume has trended lower during that run-up. RSI finally moved into the overbought zone closing at 72. So, we feel some caution is warranted over the next few days, but any pullback would potentially be seen as a buy-the-dip opportunity for traders. Possible support could now come in at 4326.60, and we see that level possibly being tested in the next few days.
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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