U.S stock futures were higher on Friday after the release of strong economic data. Markets will look to rebound after heavy selling on Thursday that moved markets below key support levels. European markets were higher after several important earnings announcements, and Asian markets moved to a 14-month high on hopes of a trade agreement deal being finalized.
The S&P 500 moved sold off on Thursday, and it is now above a key potential support level at 2896.35. The next level of potential support now becomes 2873.33. The RSI index has worked off the overbought, above 70, condition and is now at a comfortable 59.48 reading. We feel the trading in a range of 2896.35-2954.13 for a few days will be healthy and will possibly bring in new buyers to the markets.
U.S. job growth surged in April to an increase of 263,000, and unemployment moved to a 49-year low of 3.6%. Steady wage growth was also reported at an annual growth of 3.2% which is consistent with lower inflation. At this point, we feel it is now clear there is a strong U.S. economy with little inflation to slow down growth.
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. The NASDAQ Composite is a stock market index of the common stocks and similar securities listed on the NASDAQ stock market.