The S&P 500 futures were up as much as 106 points to start the day due to a possible stimulus package being passed. Senator Schumer and Treasury Secretary Munuchin reportedly said a relief bill is close to being passed later today. Global markets were up as much as 2% to start the day after traders assessed the Feds announced historic measures to support the U.S. economy.
The S&P 500 closed at a new low for the year of 2237.40 after support at 2280.52 did not hold on Monday. Volume was not as heavy as Friday’s but was still above average. The RSI index continued to be divergent and did not set a new low along with the index. So, we are still hopeful a short-term bottom could possibly be formed soon because we feel the selling power is potentially drying up. However, we will remain cautious and keep our short-term bearish stance for now.
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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