Wall Street is set for a higher open to start the week as more states begin to lift coronavirus shelter in orders. A white House economic advisor reported that the U.S. jobless rate would likely hit 16% or more for April, and that could lead more states to begin to reopen for business. Investors will also be on alert for Q1 earnings reports included Apple (AAPL) and Microsoft (MSFT) later this week. There will also be a Federal Reserve meeting on Wednesday, but expectations are low for more easing from the U.S. central bank.
The S&P 500 closed at 2836.74 on Friday, which was above resistance at 2825.60 and the 50-day moving average at 2807.71. The move came with average volume along with an RSI rising in support to close at 55.01. So, we consider this a possible start to a new uptrend. There will need to be a follow-through day with above-average volume to confirm the uptrend. Potential resistance could still come in at 2879.22, while possible support will come in at 2807.74.
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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