The S&P 500 tested a resistance level.
- The S&P 500 traded up near the 2600 level and the moved lower as expected.
- The up move came with lower volume, so we are still cautious about a new uptrend.
- Potential support is now the 20-day moving average at 2523.40 and the 10-day at 2741.00. Typical when there are two support levels together it is much stronger support.
- RSI has moved above the middle line to 52.12 which is good sign for more potential upside moves.
John N. Lilly III, AAMS
Portfolio Manager, RJ
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum Oscillator that measures the speed and changes of price movements.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision.