U.S. stock markets are set to open lower on Tuesday and the Dow is poised to post the worst first quarter in history. The Dow moved higher by 700 points on Monday as investors were encouraged by announced approaches to contain the pandemic. President Trump extended the social distancing timeline to April 30th, and most economists believe that will help reduce the damage to the U.S. economy. However, market volatility is expected to continue for the rest of the week.
The S&P 500 has now formed a small trading range of 2562.92-2673.1, and we feel it is still in a good position for a possible move higher soon. We feel the current base could be a continuation pattern, but we do see some selling coming in today. However if possible, support at 2562.92 should hold the index will still be in a base. So far, the volume has been below average while the base forms which is common in continuation patterns. The RSI index continued to move higher to support the up moves and closed at 46.73 just below the essential 50 level.
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
Windsor Wealth Planners & Strategist
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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