S&P 500 futures are higher on better-than-expected trade data from China, and some economies were potentially starting to open up again. Exports and imports compressed less than expected in China as factories restarted production. Domestically, earnings Q1 earnings season has begun with JPMorgan (JPM) profits were down for the quarter, and Johnson & Johnson (JNJ) beat Q1 estimates but slashed its 2020 profit projection. Also, investors will be awaiting word from President Trump on his plan to re-open the economy.
The S&P 500 traded down to support at 2711.33 and rallied to close at 2761.63 on Monday. The index is now in a new trading range of 2711.33-2825.60, and a move above the potential upper resistance could happen this week, in our opinion. If so, that would bring in the potential for 2882.59 to become resistance and bring the index back up to the 50-day moving average. We continue to believe more sideways trading action to build a base would be best before a new move higher. However, buyers appear to be taking control of trading this morning.
We are currently long-term bullish and short-term bullish.
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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