U.S. stock futures are higher this morning after a drop in the number of new coronavirus cases in China. The news raises hopes that the economic fallout from the virus will not be as bad as expected. Later today, Fed Chair Powell will conclude his semiannual testimony before the Senate Banking Committee, and the Chairman is likely to continue with a dovish expectation for the U.S. economy.
The S&P 500 moved past resistance at 3333.18 to close at another new all-time high at 3357.75 on Tuesday. The move came on below-average volume, and the rally faded late in the day. The RSI index did move higher in support of the move but did not make a new high along with the S&P 500. So, the new highs continue to be suspect until the confirming indicators also move higher. Potential support should now become 3352.26, and possible resistance could come at 3375.63.
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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