Morning Brief
Headline News:
Wall Street is set to open lower today as fears rise that the continued spread of the COVID-19 variant will slow the U.S. economy’s growth. The FOMC meeting notes released on Wednesday showed the Fed feels the U.S recovery has a long way to go. However, Atlanta Fed President Raphael Bostic warned that a spike in the virus could hamper the economic recovery. Also, the 10-year yield fell by another four basis points to 1.28% and is another sign investors are now in a risk-off mood.
Markets:
The S&P 500 closed at yet another all-time new high at 4358.13 on Wednesday. The RSI index moved back into the overbought territory after closing at 71.19. This morning, the S&P 500 is down 1.29% in pre-market trading and is set to open under the support level at 4300.73. The next potential support level could then possibly come in at 4274.67. There is also possible support at the Fibonacci 50% retracement level at 4262.93, and we feel the index will hold above this level for today. If the selling becomes intense, there is a possible strong support level at 4257.16. We are moving to a short-term bearish stance today.
We are currently long-term bullish and short-term bearish.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJFS
Partner, DJWMG
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.
This is not a recommendation to buy or sell any company’s stock mentioned above.
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