Morning Brief
Headline News:
Equity futures point to a slightly higher open this morning, following yesterday’s action that saw mega-cap and tech names push the major averages to fresh record highs.
Earnings reports have ramped up, with roughly one-third of all S&P 500 names set to report this week. Investors are currently receiving a hefty batch of reports this morning, though they will not see any mega-cap reports until tomorrow.
Tomorrow also brings forth the October FOMC meeting, at which the market largely expects a 25-basis-point rate cut, which has served as an additional tailwind.
Until then, investors had a wide swath of earnings to peruse, as well as the 10:00 ET release of the October Consumer Confidence Report (Briefing.com consensus: 94.2).
On the trade front, President Trump has reiterated his belief that his Thursday meeting with Chinese President Xi will go well.
(Michael Gibbs, Managing Director, Lead Portfolio Manager )
Markets:
The S&P 500 surged to another new all-time high, closing at 6,875.16, and now sits entirely above the upper Bollinger Band—an indication that the index is overextended in the short term. This positioning makes it difficult to attract additional buyers today. Up volume accounted for only 65% of total volume, suggesting limited participation, while the RSI has yet to confirm the new price high.
Today’s trading could remain subdued as investors await the outcome of the FOMC meeting, with the interest rate announcement scheduled for tomorrow afternoon. There is no defined overhead resistance, and initial support could emerge near 6,870.11.
We are currently Intermediate-term cautious and short-term bullish.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJFS
Partner, DJWMG
Windsor Wealth Planners & Strategists
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 percentage of stocks trading above a specific moving average is a breadth indicator that measures internal strength or weakness in the underlying index. The 50-day moving averages are used for short-to-medium-term timeframes, while the 150-day and 200-day moving averages are used for medium-to-long-term ones. Signals can be derived from overbought/oversold levels, crosses above/below 50%, and bullish/bearish divergences.
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