Wall Street is set for a higher open after continued good Q1 earnings results. Bank of America (BAC) reported better than expected earnings and was higher by 1.3% in pre-market trading. Newly listed stock Coinbase (COIN) was higher by 8.8% this morning, a day after first-day trading that saw its market cap briefly touch $100 billion. Meanwhile, U.S. retail sales increased by 9.8% in March, and February’s report was revised higher to 2.7%, showing an increase in consumer demand.
The S&P 500 traded sideways on Wednesday and has formed a small trading range of 4120.87-4151.69. The RSI index moved below the oversold zone, closing at 69.37, typically bringing in the sellers. A move above the 4151.69 level could be seen as bullish and attract new buyers since there will be no overhead resistance. We would like to see the trading remain inside the new range before continuing the impressive recent rally.
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.
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, opinions, 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.
This is not a recommendation to buy or sell any company’s stock mentioned above.