U.S. stock futures are higher today after a report came out that China is open to a partial trade deal with the United States. Also, a separate report sited that Beining was offering to increase its annual purchases of U.S. agricultural products. Fed chair Jerome Powell hinted at another rate cut saying the central bank will act “appropriate” at the October meeting.
The S&P 500 sold off for the second day in a row on Tuesday to close at 2893.06, which is just above critical support at 2891.85. Volume was higher, but it was not enough to claim that the sellers are back in force. RSI moved lower again to close at the 40.05 and confirmed the down move for the day. If the index should move below the 2891.85, more selling could come into the markets, and possibly take the index down to the 10/2/2019 low of 2855.94.
We are currently long term bullish and short term bearish.
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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