The S&P 500 futures are down 48 points due to President Trump’s threat to raise tariffs on China. The President said he would hike U.S. tariffs on $200 billion worth of Chinese goods this week, and he would also target billions more soon. Global markets were caught off guard after weeks of promising comments on a deal for weeks. Chinese shares were off 6% and European stocks were down to a one-month low to start the week.
The S&P 500 is set to open down 1.6 %, as of 8:49 am, and the index is just above potential key support at 2890.70. The next level of support could be 2873.33 and then 2860.30. Since most traders were caught off guard by the President’s comments markets could be in for a tough day. Our short-term bearish stance has proved correct, however, we feel the selling will not be heavy enough to move us to long term bearish today. Some investors could now be in a wait and see mode to start the week.
On Friday the employment situation report came in at a gain of 263,000 which was above estimates. The reported number for March was 196,000, so the economy appears to be healthy and growing.
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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