U.S. stock futures moved lower along with Asian markets as signs are showing the that U.S.-China trade war is hurting corporate profits. eBay (EBAY) rose 5.4% after announcing earnings while Netflix (NFLX) moved 11% lower after posting a loss of subscribers. U.S. and Chinese officials will hold a phone conference on Thursday that could help in the ongoing trade talks.
The S&P 500 moved lower for the third day in a row on Thursday and moved below support at 3002.98 to close at 2984.82. The selling again came with higher volume while the RSI index continues to move lower towards the import 50 level. Potential support will now be at 2963.44. The market should continue to be choppy until the second-quarter earnings season is complete. We feel a short-term cautious stance is still the best course of action for this type of market.
We are currently long term bullish and short 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.
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