U.S equities are set to take a break this morning with S&P 500 futures down 2.46 at 7:35 a.m. Traders will be looking at economic data releases today for more clues to the future of the U.S. economy. Upbeat U.S. and China manufacturing data released on Monday brought a rally on Wall Street.
The S&P 500 moved to a new high for the year yesterday, and it closed at 2867.19. The index has moved higher three days in a row with average volume. We feel the another the buying could potentially slow down, but not enough to end the recent rally. I a pullback into the top end of the recent trading range would be healthy for the index.
The World Trade Organization, WTO, reported that world trade shrank by 0.3% in the fourth quarter, and it is likely to grow by 2.6% this year. This data more evidence of a possible slowdown in the U.S. economy later this year. The 3- month 10-year yield curve spread has moved back to positive at .06bps, so we are confident in a strong economy at this time.
We are currently 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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