U.S. markets are set to open higher after trade restrictions were lifted on China’s Huawei Technologies. European markets were positive, led by tech stocks, and Asian markets ended the day higher. Investors will also be watching for earnings from several vital retail stores today
The S&P 500 tested support at 2854.33 and bounced higher by .85% on Tuesday. However, the up move came on lower than average volume which means we will remain cautious for the short term. The RSI index is still under the 50 level, so we feel the index has more work to do before we are short term bullish. Potential support remains at 2854.23, and possible resistance is now at 2892.15.
The U.S. Redbook report, a retail sales measure, came out at 5.2% for April compared to a March number of 5.4%. Existing home sales for April were reported at 5.19 M compared to 5.2 M for March. The FOMC will end a two-day meeting today. Chairman Powell said further weakness in the economy could be a cause to cut rates later this year. Investors will want to see the official comment from the committee.
We are currently long term bullish with 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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