U.S. stock futures are lower after new data showed consumer prices rose in June. The CPI increased by 0.9%, while the core CPI rose 4.5% year over year for the month. That was the most significant increase in 13 years for the month of June, which is further evidence the economic recovery is gaining momentum. A rise in vaccinations, low interest rates, and continued government stimulus is increasing consumer demand, straining the supply chain, and raising prices in the U.S. economy.
The S&P 500 closed at another new all-time high at4384.63, and the index has moved 2.2% higher in three days. However, during that three-day rally, the volume has been lower each day, and yesterday had only 1,705,771,904 shares that were traded. We will continue to be concerned about the lack of volume because we feel that is a sign of selective buying. Today, potential resistance could come in at 4386.68, and possible support will remain at 4361.88.
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
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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