U.S. stock futures are higher this morning a day after the Nasdaq index moved into correction territory. European markets are positive, and Asian markets moved lower on more trade war fears. An investigation of the world’s internet and social media giants help bring tech stocks lower by 1.4% on Monday. Traders will be looking for a move higher on big volume to calm nerves after seven straight days of selling.
The S&P 500 sold off for the sixth day in a row on Monday. The selling came on above-average volume, and the index tested support at 2725 before rallying to end the day. RSI moved below the important 30 level to close at 29.91, so the index is now oversold and due for a move higher. Any buying in the future could be short-lived, so we will continue to remain cautious short term.
The U.S. PMI Manufacturing Index was reported at 50.5 on Monday, which was lower than April’s 52.6 reading. Consumer spending was flat at 0.0% for May but higher than the prior month’s report of -0.9%. The Ten-Year Treasury closed at 2.08% and is now 0.05% away from the 2017 low of 2.034%.
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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