U.S. markets are little changed this morning as traders wait for the FOMC committee to decide on interest rates this week. Markets in Asia ended the day mixed and geopolitical events in Hong Kong and the Middle East weigh on the markets.
The S&P 500 has formed a base between 29874.68-2910.61, which is the sideways action we were expecting. Volume and RSI have also formed basing patterns that support the rest in the markets after the recent up move off the lows. We are expecting more basing action this week before there is an attempt to break out of the new trading range.
The Federal Reserve is said to be resisting pressure to lower rates during the two-day meeting this week. However, they are also expecting to lay out a plan for a rate cut later this year.
We are currently long term bullish and short term cautious.
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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