The global rally in stocks lost some momentum on Thursday due to foreign economic data. Weak Germany factory orders and slowing expansion raised more fears of a global slow. A continued Brexit stalemate and the long-awaited U.S.-China trade deal also hurting on foreign markets. As of 7:35 a.m. S&P 500 futures were off 2.40 points.
The S&P 500 was able to stretch the five-day rally into another closing high for the year at 2873.40. We feel the index is extended and could potentially have trouble moving higher from these levels. A pullback into the 2850 level would be constructive and possible then lead to new highs.
Today the U.S. Jobless Claims will be reported, and the consensus is 216K for March. The big economic number will be tomorrow’s release of the U.S. Employment Situation number. This data point could potentially be a market mover, either way, depending on how strong on weak the data comes out.
We are currently 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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