Wall Street is set to open higher today after good first-quarter earnings reports. Apple (AAPL) was higher by 5% in pre-market along with Advanced Micro devices (AMD) which were higher by 5.1%. Investors were encouraged by yesterday reports, and they are set to move the S&P 500 up to another all-time trading high today at the open.
The S&P 500 did have a good follow-through trading day with better than average volume. However, RSI remains overbought which could potentially limit a big upside move. The long-term trend is still higher, but we will be cautious short term due to the index being extended and having moved higher over 25% since the 12/24/2018 low.
Today the Federal Reserve is expecting to resist pressure from President Trump to cut interest rates. The President is calling for a 1% cut in overnight lending rate, but the FOMC is expected to leave rates unchanged at the end of their meeting today.
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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