Technical Analysis

Last week we had a momentum change in the market. We saw the S&P 500 close on Friday at 4,468 which pushes the resistance level to 4,490 and the support level to 4,440. We gave intermediate to long-term moving day averages the last few weeks, so today we wanted to go over the shorter-term moving day averages. The 20-day moving average, which kind of coordinates with a month time span, is now at 4,404. It’s important to notice that that base is starting to rise. However, while we did see some short-term volatility, we’ve also seen this push up the markets as well.

Obstacles

Can this market go any higher and how do we continue to see strength? The bulls are saying the market is going to continue to go up and the bears are saying it’s going to eventually go down. On the chart shown in the video for this episode, you will see what obstacles are currently out there for the market. The chart shows obstacles such as the delta variant, swelling inflation, negative consumer sentiment, and crypto speculation. Other obstacles might include the news outlets and politics. Those are things that the market has been able to continue to climb through in the past. There is a saying that a bull market climbs a wall of worry, and there’s definitely is a lot of worry for people out there.

The Consumer

We’re seeing outstanding earnings reports and support from central bankers. We are tracking the consumer and this Tuesday we will get the report on retail sales. This will give us a better breakdown, from a consumer standpoint, of where certain industries are being impacted from a buying and selling level. The Financial Services sector has now hit a 20-day high. That’s going back to the Fed. As we see a little bit of momentum come back into the Financial Sector, what does that mean? This could be an intermediate to long-term issue with the Fed rather than a short-term issue that we are continuing to watch.

 

Greg Powell, CIMA®
President and CEO
Wealth Consultant
Email Greg Powell here

Adam Vansant, AIF®
Associate Vice President
Wealth Consultant
Email Adam Vansant here

 

Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Economic forecasts set forth in this presentation may not develop as predicted.

No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.

Securities and advisory services offered through LPL Financial, Member FINRA/SIPC and a registered investment advisor.

Consumer Strength vs. Inflation It's All Connected