U.S. futures are higher after President Trump said complaints against Huawei could be resolved in a future trade deal. Technology stocks have been selling off due to the conflict with the Chinese company. European markets were lower and Asian indexes closed little changed. Investors will be watching to see if the S&P 500 can stay above the 2800 level.
The S&P 500 gapped lower and a closed below support at 2831 on Thursday. The index now has potential support at the critical 2800 level which it came close to testing on the day. The RSI index also moved lower to confirm the down move in the index. Will remain short term cautious until there is a move back above 2854.23. A move below the 2800 level could see more selling come into the markets.
New orders for U.S- made capital goods fell more than expected in April, and new home sales came in lower at 673K. This is further evidence that the economy has slowed after a strong first quarter of 2019.
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.
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