U.S. markets are set to open higher on growing hopes the Federal Reserve will cut rates this year. Fed funds futures are predicting a cut as soon as next month, and markets appear ready to potential rally on the news. The market action on Tuesday has moved us to a short-term bullish stance.
The S&P 500 had moved above key resistance at 2800 to finish with the best day in six months. The move did come with better than average volume, and RSI also turned higher after being oversold. The index needs a follow-through day that closes in the middle of the 2800-2840 range to confirm the trend has changed.
The U.S. Redbook report came out higher at 5.8% and above the April report of 5.7%. Over the next month, economic reports will be closely watched now that the Fed has hinted at possible rate cuts.
We are currently long term bullish and short term bullish.
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.
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