U.S. markets are set to open higher after trade restrictions were lifted on China’s Huawei Technologies. European markets were positive, led by tech stocks, and Asian markets ended the day higher. Investors will also be watching for earnings from several vital retail stores today
The S&P 500 tested support at 2854.33 and bounced higher by .85% on Tuesday. However, the up move came on lower than average volume which means we will remain cautious for the short term. The RSI index is still under the 50 level, so we feel the index has more work to do before we are short term bullish. Potential support remains at 2854.23, and possible resistance is now at 2892.15.
The U.S. Redbook report, a retail sales measure, came out at 5.2% for April compared to a March number of 5.4%. Existing home sales for April were reported at 5.19 M compared to 5.2 M for March. The FOMC will end a two-day meeting today. Chairman Powell said further weakness in the economy could be a cause to cut rates later this year. Investors will want to see the official comment from the committee.
We are currently long term bullish with short term cautious.
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.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, onions or forecast provided herein will prove to be correct. “ The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets.