Wall Street is set to open lower on Tuesday after a mixed bag of earnings results. Merck (MRK) was higher by 2.7% premarket along with Pfizer (PFE) up 3.3% premarket after reporting strong earnings. Alphabet Inc (GOOGL) missed earnings estimates and was off 1.1% in premarket trading. So far, Q3 earnings have been better than expected, with over 78% of the 204 companies that have reported beating expectations.
The S&P 500 broke out past old all-time high set on 7/26/2019 of 3027.98 to close at a new all-time high of 3039.42. The move came with average volume, so the index will need a follow-through day soon with above-average volume to confirm a new uptrend. There is now potential resistance at 3044.08, which was yesterday’s high of the day, and possible resistance at 3050.00 that is a trend line dating back to 2018. The RSI is not overbought on the daily, weekly, and monthly chart, so the potential new uptrend has support.
We are currently long term bullish and short term bullish.
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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