Morning Commentary
Headline News:
U.S. stock futures are lower to start the week after last week had strong Q1 earnings results. Also, economic data releases showed an improving economy and an accommodative Federal Reserve. Meanwhile, according to CDC data, half of all U.S. adults have received at least one Covid vaccine dose. More than 129 million people ages 18 and older have received one shot, and 32.5% of adults are now fully vaccinated.
Markets:
The S&P 500 ended the week with another new closing high at 4185.47. The week’s trading did see a slight increase in volume, with Friday’s trading being the high mark at 2,205,716,992 shares traded. Today could be a sideways trading day as the index now needs consolidation before moving higher. The RSI stayed in the overbought zone closing at a new high of 74.53. If the recent pattern holds, the base could be one or two days before the uptrend continues. Potential support could come in at 4173.49, and possible resistance is now at 4191.31.
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, RJFS
Partner, DJWMG
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.