Wall Street is set for a flat open after U.S jobless claims came in at 4.43 million, bringing the five-week total to more than 26 million. The five-week total has now surpassed all the job gains since the financial crisis. In Washington, a $484 billion coronavirus relief bill is set to be passed, bringing the total funds approved for the crisis to nearly $3 trillion. The new bill will provide funds to struggling small businesses and hospitals. First-quarter earnings continue to be released, and Target (TGT) stories reported a surge in online sales. Overall sales for the retailer rose more than 5%, sales of food and beverages rising over 12%, and toys and electronics were up over 30% for April.
The S&P 500 rallied up to the 50-day moving average at 2829.76 but closed at 2799.31 on Wednesday. The index also failed to breach resistance at 2825.60 on lower than average volume. The RSI index turned higher in support of the rally and closed at the 53.21 level. A move above resistance and the50-day moving average would be bullish move, and buyers could potentially move in and trade the index higher. However, until then, we believe more sideways trading is needed before a new uptrend can form.
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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