Wall Street is set to open lower this morning over continued fears of the economic threat from the coronavirus. A $ 2trillion stimulus deal being passed soon helped the S&P 500 rally 9.4% on Tuesday, but traders worry that the agreement was already priced into the markets. Fears of continued spread of the virus and the potential for a recession still ways heavy on investor’s minds this morning.
The S&P 500 rallied back into the old trading range of 2478.86-2280.52 on better than average volume. The RSI index also turned higher in support of the days buying to close at 39.24. The trading action was encouraging and added to our belief that a potential short-term bottom has been achieved. Possible resistance is now at 2478.86, and we also feel good that level can be taken out soon. The index will now need a follow-through day of buying with heavy buying to confirm the potential bottom.
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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