U.S. stock futures are higher on optimism for a partial trade deal, and a delay in the scheduled U.S tariffs increases. President Trump is set to meet with Chinese Vice Premier Liu He later today to continue negotiations. Also, U.S. import prices rose less than expected, suggesting that imported inflation will remain low. Data for August was an increase of 0.2% instead of an expected 0.5% increase. The data could support the expectations of a Federal Reserve rate cut later this month.
The S&P 500 rallied again on Thursday and briefly moved above resistance at 2945.50 but only closed higher on the day at 2938.13. The index is now in a strong position near the upper end of the 2891.85-2945.520 trading range. Volume picked up marginally, and the RSI index did move higher and closed at 48.35. We feel good that potentially new buying has come into the markets, and we could see a rally out of the current trading range soon.
We are currently long term bullish and short term bearish.
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.