Morning Brief
Headline News:
Equity futures point to a lower opening this morning after the major averages finished lower on Friday and mostly lower for the week.
Stocks had a somewhat choppy previous week following mixed reactions to a batch of highly anticipated mega-cap earnings reports. The market will have plenty of high-profile earnings reports to assess this week, including those from a few Mag 7 companies.
This week will also feature some key employment data, including the December JOLTS report on Tuesday and the January Employment Situation Report on Friday.
In Washington, the Senate has passed a bill to fund most government agencies through September 30 and DHS through February 13. The government will be shut down at least until Tuesday, as House Democrats oppose the funding bill and some conservatives want to attach an election reform bill to it, according to Politico.
Elsewhere, Axios reports that the Trump administration told Iran it is ready to meet and negotiate a deal, which has weighed on oil prices this morning.
(Michael Gibbs, Managing Director, Lead Portfolio Manager |)
Markets:
The S&P 500 traded below its 20-day moving average at 6,929.03, but buyers stepped in and the index managed to close higher at 6,939.03. However, the recent action may be sending a warning signal, as volume has been heavier on down days—suggesting distribution rather than healthy consolidation.
So far this morning, S&P 500 futures are lower by 0.48%, which will test buyer resolve for a third consecutive session. If sellers gain control, there is potential support at 6,858.47, a level we believe should hold if tested today.
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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