U.S. stock futures are lower this morning on fears potential stimulus efforts will not halt the economic impact of the coronavirus epidemic. President Trump met with top Republicans to discuss a payroll tax cut, but he did not announce any concrete plans for a new policy. A good night for Presidential candidate Joe Biden also has not been able to stop the early morning selling. Later today, the Labor Department will announce inflation for February, and traders will be watching the number closely for the health of the U.S. economy.
The S&P 500 rallied above resistance at 2855.84 on good volume to close at 2882.23 on Tuesday. The RSI index moved above the 30 level, typically a potential buy signal, to close at 36.86 in support of the up move. Possible resistance could now come in at 2976.63 if the buyers come back into the markets today. We will remain short term bearish because we feel the rally was an oversold bounce, and we think the selling is potentially not done due to many resistance levels in play
We are currently long-term bullish and short-term bearish.
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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