U.S stock futures are lower on news that China will impose $75 billion worth of tariffs on U.S. goods. S&P 500 futures were higher to start the day before the announcement. Also, today Fed Chairman Jerome Powell will give a speech at Jackson Hole, and traders will be looking for any verbiage on possible future interest rate cuts.
The S&P 500 has formed a tight range of 2899.60-2943.41 over the last four trading days on lower than average volume. The low volume shows investors are uncertain about the future direction of markets. The RSI index has also moved in a tight range and is just under the 50 level. So, it appears markets are still cautious and are looking for any catalyst to possible move the index higher.
We are currently long term bullish and 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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