Wall Street is set to open higher today on news of a slowing in the coronavirus infections, and on hopes that China would continue to take steps to prop up its economy. In the U.S., investors will hear from several FOMC voting members throughout the day, and they will be able to read meeting notes from the Fed’s January meeting. There will also be critical economic data released about inflation and the housing sector.
The S&P 500 moved down to support at 3352.26 and bounced higher to close at 3370.29 on Tuesday. There was a pickup in volume, and the RSI turned lower to close at 63.26. The index has now formed a good four-day base inside the current trading range of 3352.26-3385.09. The longer the basing goes on, the better the chance of a potential attempt at a new high.
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
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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