The S&P 500 has been in a trading range of 2484-2459 since 7/27/2017. The volume has been lower during this basing time which is healthy for the markets. The chart below shows the up move starting on 7/6/2017 was a 3.2% move higher, and the S&P 500 has been trading sideways since the moved stopped on 7/19/2017. So, if the markets break out from the current base, we could potentially see another move higher of 3.2%. Typical when the index moves higher and forms a base the next move higher is, often, the same percent move as the first up move.
- What does this mean for your portfolio? We are trading the minor moves in the trading ranges to help add more growth to the portfolios. If we do see a break out to new highs, we will begin to hold stocks longer during the potential new higher move in the index.
John N. Lilly III AAMS
Portfolio Manager DJWMG
The S&P 500 is an unmanaged index of 500 widely held stocks. Past performance may not be indicative of future
results. It is not possible to invest directly in an index. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. 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.