Wall Street is set for a lower open on concerns about the financial fallout of a spreading Coronavirus outbreak in China. Several cities in China have been locked down for contagion fears, and that has many investors heading for the sidelines. Markets will also here earnings reports from 141 S&P 500 companies, including Apple (AAPL), Microsoft (MSFT, and Boeing (BA). Traders will be watching these reports closely, and they could also potentially be market movers.
The S&P sold off below support of 3302.82 on Friday and closed at 3295.47 for the week. Potential new support could come in at 3260.86 if the selling continues this week. The RSI index did move below the 70 level, which is often a possible sell signal for many traders. Volume was only average, which is a good sign that this may be only a small pullback. If the potential support is taken out, the index could be in for a few more days of selling going forward.
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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