U.S. futures were little changed to start the day after the S&P 500 closed at an all-time high on Friday. Weak Eurozone economic sentiment brought European shares lower, and Asian shares closed mixed overnight. Investors will be looking to the U.S. Federal Reserve meeting later this week for more clues on the health of the economy.
The S&P 500 closed at a new all-time high at 2939.88 on 4/26/2019, but the breakout came with only average volume. The RSI index is now overbought which will make it tough to move much higher from these levels. We will be looking for a follow-through day higher on good volume to confirm the breakout.
The personal consumption expenditures gauge showed no change in March, and the number remains below the central bank’s target. The number was flat for the month and up only 1.6% year over year. The PCE deflator is the Federal Reserve’s preferred inflation gauge, and a 2% reading is considered healthy for price stability. We feel the Fed will potentially not raise rates this year based on today’s release.
We are currently long term bullish with short term caution.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Partner, Windsor Wealth
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, onions 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.