U.S. markets are set to open higher for a third day in a row despite no progress in trade talks with Mexico and China. President Trump threatened China with “at least” another $300 billion in tariffs and is set to implement the 5% tariff on Mexican goods next week. The mix of economic, political, and corporate data will be challenging for investors to worth through today.
The S&P 500 is currently in the middle of a new trading range of 2800-2840, and we feel the index could stay in this range for a few weeks. Wednesdays up move came in lower volume so markets could be ready for a few sideways days to finish the week. The 2800 level is now possible vital support that will need to hold if any selling does develop.
The U.S. Redbook report came out higher at 5.8% and above the April report of 5.7%. Over the next month, economic reports will be closely watched now that the Fed has hinted at possible rate cuts.
We are currently long term bullish and short term bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Dominguez & Jones Wealth Management Group
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 Redbook Index is a sales-weighted of year-over-year same-store sales growth in a sample of large US general merchandise retailers representing about 9,000 stores. A higher than expected number should be taken as positive to the USD, while a lower than expected number as negative.