U.S. stock futures were higher to start the day on hopes of another stimulus package out of Washington and more positive Q2 earnings reports. IBM (IBM) and Coca-Cola (KO) both reported earnings that beat analyst expectations. In Washington, congressional Republicans are said to be working on a $1 trillion relief bill to help boost the slowing economy.
The S&P 500 moved above resistance at 3233.13 and closed at 3251.84 on Monday. Although the index did breakout, the volume was only average, making the breakout suspect for now. There will need to be a followthrough day with above-average volume before there can be a possibly a new uptrend form. Potential support could now come in at 3233.13 if sellers come back into the market.
We are currently long-term bullish and short-term bullish.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Windsor Wealth Planners & Strategist
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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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