U.S. stock futures were trading flat to start the day after Q1 earnings from Morgan Stanley (MS). The investment bank had a 150% jump in profits while showing an almost $1 billion loss from the demise of private fund Archegos. The report was the last from the major U.S. banks that showed strong earnings after an increase in investment banking gains. Investors now appear encouraged that fast economic recovery could be on the way later this year.
The S&P 500 closed at another all-time high at 4170.42 after moving out of another small base. The volume was low with only 2,119,606,400 shares traded, and RSI moved back into the overbought zone closing at 73.36. However, low volume and wide range trading days are, for now, the norm and must be respected. If the recent pattern continues, then today could be a small sideways trading day to set up another attempt at a new high. Potential resistance could come in at 4173.49, and possible support will be at 4151.69.
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.