U.S. stock futures were flat to start the day as traders review the details of the U.S.-China trade deal. Equity markets sold off late on Tuesday after Washington announced tariffs would likely remain on Chinese goods. Also., Bank of America (BAC) and Citigroup (C) reported better than expected earnings. Target Corp (TGT) was off 7.6% after missing its own expectations for the 2019 holiday season, and the company blamed weak sales in toys and electronics for the weakness.
The S&P 500 traded at a new all-time high of 3294.25 on Tuesday but closed at 3283.15. There is now a clear trading range of 3258.14-3294.25, and we feel markets are being patient waiting on fourth-quarter earnings announcements. There was a pickup in volume, and RSI moved down to 69.58, and both are indications of uncertainty in equity markets.
We are currently long-term bullish and short-term bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Partner, Windsor Wealth
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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