U.S stock futures were lower this morning as weak economic data out of China signaled slow growth in the country. China’s producer price index fell 0.8% in August, the most significant decline in three years, which has investors fearing a global recession. The U.S Federal Reserve is now expected to lower rates at the September meeting, and European Central Banks are likely to reduce deposit rates later this week.
The S&P 500 traded as high as 2989.43 which was above resistance at 2985.86 only to close at 2978.43. Volume was well above average, which shows traders were active all day. The RSI index did not move higher on the day and closed at the 58.28 level. We consider Monday’s trading a sideways day which is constructive for a market trying to breakout. We continue to believe the path of least resistance will potentially be higher.
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, 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.