U.S. stock futures are higher on news that trade talks will resume between the U.S. and China. The Chinese commerce ministry said a September meeting was on the table but added that Washington needs to cancel a tariff increase. Also, U.S consumer spending increased by 0.6% in July help ease the threat of a slowdown in the economy.
The S&P 500 moved higher on Thursday to close at 2824.58 after briefly touching a support level at 2852.00. The index is now in a trading range of 2822.13- 2943.31 and looks to be in position to possible test the high of the range. The RSI index broke out of a base to close above the important 50 level at 51.67. Volume has been lower during the two-day rally and must pick up before any attempt to move higher. However, the holiday week may account for the low trading volume. Markets appear to be healthy, going into the three-day weekend.
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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