U.S stock futures were higher on Tuesday due to European Central Bank President Mario Draghi suggesting more policy easing is needed. This helped fuel further expectations of lower rates from the FOMC, which starts a two meeting today.
The S&P 500 traded within the trading range of 2874.68-2910.61 with low volume on Monday. Investors appear willing to wait and see what the Fed does on Wednesday before committing to trades either way in the markets. We continue to believe more sideways trading is needed to consolidate the recent bullish move off the low of the year. A move above 2910.61 should bring in more buyers and possibly start a new leg higher.
We are currently long term bullish and short bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Partner, Windsor Wealth
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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