U.S. stock futures are mixed after two major banks reported better than expected Q1 earnings. JPMorgan (JPM) beat estimates on both the top and bottom lines but was down over 1% in pre-market trading. Goldman Sachs (GS) reported record Q1 net profits and revenues and was higher by 1.7% in early trading. Also, crypto exchange company Coinbase (COIN) will begin trading on the Nasdaq exchange this morning. Investors will be monitoring the first day of trading closely as the crypto space continues to gain steam.
The S&P 500 closed at another all-time high of 4141.59 after moving out of the small trading range. The base, once again, did not last long after a wide range day on 4/9/2021, which has been the pattern during the uptrend. The volume came in low at 2,051,974,656 while the RSI index remains in the overbought zone closing at 73.13. We question whether or not investors are pricing in good Q1 earnings ahead of the upcoming announcements, leading to a potential sell the news scenario. However, the uptrend is still in place, and the index remains bullish. Potential support could now come in at 4131.76, and possible resistance is now at 4,148.00.
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, RJ
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.
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