U.S. Stock markets are set to open higher today after Tuesday’s selling on trade and growth concerns. Also, the IMF cut the global growth forecast which brings back a global slowdown concern. Investors will now be keying off the upcoming earnings announcements that will start on Friday. If earnings start to come in weak, we feel more selling could come into the markets.
The S&P 500 broke below a minor trend line on Tuesday after post two straight days of new yearly highs. Support now becomes the old year high set on 3/21/2019 at 2860 along with the ten-day moving average. We feel the markets will be patient with major buying or selling until earnings season starts on Friday. RSI moved out of the oversold level which is what we were wanting to see happen.
The U.S. Consumer Price Index rose 0.4% which was the biggest advance since January 2018. This was on top of a 0.2% advance in February. In the 12-month period through March, the CPI increased 1.9%. Inflation remains low and wage growth only increasing moderately. So the Federal Reserve should remain on course to not increase rates this year.
We are currently long term bullish with short term caution.
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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