U.S. stock futures were lower due to worries over a possible U.S military strike against Iran. European markets were weak, Japan’s Nikkei was lower, and China stocks ended the day higher. President Trump sent a message to Iran officials that an attack was imminent only to call off the attack last night. Investors will potentially wait and see how this conflict plays out before committing new money to U.S. markets.
The S&P 500 raced to a new all-time high with better than average volume on Thursday. The RSI index also moved higher in support of the up move and is now just under the overbought level. We feel that new highs are coming after some sideways trading and the Middle East tensions are resolved. The index is now extended and markets rarely breakout to new highs from an extended position.
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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