Wall Street is set for a higher open after a good week of corporate earnings showed continued growth in S&P 500 companies. More than half of the 500 companies have reported, and the profits have risen 46%, according to IBES data from Refinitiv. So far, improving economic data, strong corporate earnings, fiscal stimulus, and a dovish Federal Reserve have moved the S&P 500 and the Nasdaq to record highs this year. Investors will continue to monitor economic reports that are due out later this week that could also show continued strong growth.
The S&P 500 traded down to and held support at 4173.22, closing at 4181.17 on Friday. The index has now traded in a narrow range four out of the last five days, and we feel a breakout could potentially come this week. The trading came on good volume with 2,422,298,624 shares traded, and the RSI index did turn lower, closing at 61.96. So, a solid base has been built, and a break above possible resistance at 4191.31 should bring in new buyers.
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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