U.S. markets are set to open higher after trade restrictions were lifted on China’s Huawei Technologies. European markets were higher, led by tech stocks, and Asian markets ended the day higher. Investors will also be watching for earnings from several vital retail stores today
The S&P 500 tried to move above resistance at 2854.23 and failed on Monday. The index closed lower on less than average volume on a day when technology stocks were off by more than 1%. The May low of 2801.03 will now act as potential support if there is more selling today. The RSI index is still under the 50 level and must move higher before a possible new up move can begin. We feel this is standard trading action after a significant pullback of over 4% over the last two weeks.
The U.S. Redbook will be released today which will provide detail of comparable store sale for retailers. The report will give a good indication of the strength of the economy. The U.S. existing home sales will be released, and it will also provide economist more data on the consumer and home builders.
We are currently long term bullish with 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, 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.