Wall Street is set for a higher open on hopes that the coronavirus outbreak is near a peak in the United States. President Trump said the U.S. might be near the top of the “curve,” and that has investors in a bullish mood so far this morning. Also, the President asked Congress for $250 billion in emergency aid for small businesses. Corporate earnings season is coming soon, with companies expected to outline strategies to help with reduced cash reserves.
The S&P500 traded through resistance at 2711.33 only to sell off and close at 2659.41 on Tuesday. The trading was on better than average volume, and the RSI index closed little changed at 49.73. We believe the selling was normal profit-taking after a 12% move off the 4/1/2020 close of 24701.50. A close above 2711.33 this week would be constructive for a possible continuation of the recent bullish trend. Potential resistance could also appear at the 28852.59 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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