U.S stock futures are higher today a day after the Federal Reserve signaled likely rate cuts next month. World stock markets were all higher setting up a potentially big day for U.S. markets. The lone worry today is the Middle East tensions. Oil prices moved higher on the news that Iran shot down a U.S military drone in the Gulf.
The S&P 500 tested support at 2910.61 and moved higher for the second day in a row. Volume was strong, and the RSI index continued to move higher with the index. Possible resistance is now the old high of 2954.13 set on 5/1/2019. This level will be hard to push through without heavy buying, so we will be looking for heavy institutional buying in the coming days.
On Wednesday the Federal Reserve left interest rates unchanged but did signal cuts were needed as early as July. This is a clear sign the Fed is worried about an economic slowdown and is trying to get ahead of the problem.
We are currently long term bullish and short bullish.
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.