Futures are mixed so far this morning as traders focus on trade negotiations between the U.S. and China. European indexes were higher, and Asian markets are low due to global growth fears. The release of the final estimates for Q4 GDP could move the markets today.
The S&P 500 had a wide-ranging day on Wednesday with the index bouncing off support at 2785.02. The RSI indicator turned back down and is just above the important 50 level. If the index continues to trade in the current range of 2785.02 and 2860.31, we feel the next move will possibly be higher. A breach of support could mean a test of the 200-day moving average at 2755.89.
The Q4 final report on GDP is expected to come in 2.2%. This consensus is lower than the prior quarter that came in at 2.6%. I low number could increase the fears of a slowdown for the U.S economy. So, we will be watching this report closely today.
We are bullish on stocks.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
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. 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.