U.S. stock futures are slightly higher today on hopes of continued monetary and fiscal stimulus to help avoid a global slowdown. European markets were positive, and Asian markets rose 0.1% in Tuesday trading. Traders will now focus on the release of the FOMC meeting notes on Wednesday.
The S&P 500 moved higher for the third day in a row on Monday to close at 2923.65. The last two trading days have come on lower volume, which shows there is not a lot of enthusiasm for by the bulls. The volume will need to pick up substantially before this new up move can be considered a new uptrend. The RSI index is now in an uptrend and is about to move through the 50 level that usually brings more buyer for stocks. We feel some sideways trading is needed before the index tries to break out of potential resistance at 2643.41
We are currently long term bullish and short term cautious.
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, 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.