Wall Street is set to, once again, open at a new all-time high on Friday morning. Investors are encouraged by a slew of positive fourth-quarter earnings reports and indications of a healthy economy in China. Alphabet (GOOG) was up 0.6% in premarket trading after posting an earnings beat, Qualcomm (QCOM) was up 1.4%, and Gap Inc (GPS) gained 6.4% in early trading. The Chinese reported a strong end to 2019, which help the world’s second-largest economy have global inflows to their markets.
The S&P 500 broke out of the trading range and closed at another all-time high at 3316.81on Thursday. However, volume remained only average while the RIS index moved further into the overbought level at 74.87. Potential support will now become old resistance at 3294.25. The lack of volume is a concern, but it has not stopped the index from continuing to make new highs this year. We feel there is a possible new uptrend forming and will remain selective with our new buys.
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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