U.S. markets are set to open higher on Thursday as investors continue to monitor the bond rally and the U.S.- China trade war. European markets were higher, and China stocks closed lower. The spread between the 3-month Treasury and the ten-year Treasury also moved lower to -.12 spread.
The S&P 500 gapped lower to open on Wednesday and moved below and closed below the important 2800 level. The selling came on a second straight day of higher than average volume. During the day the index also sliced below the 200-day moving average at 2776.06 but did manage to close above that level. Potential support will now become the low of Wednesday, which was 277.06. Resistance will now potentially become the 2800 level, and we feel the index will struggle to break back through in the next few days.
The final reading of the first-quarter GDP came out at 3.1% beating Wall Street projections of 3.0%. Economist are now expecting the economy to slow with a second-quarter expectation of only 1.8%.
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.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, onions or forecast provided herein will prove to be correct. “ The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets.