U.S. stock futures are flat to start the day as an easing of trade tensions with China did little to excite investors. China’s finance ministry said 16 types of U.S. goods would be exempt from additional retaliatory tariffs. European markets are higher, and Hong Kong stocks closed at their highest levels since early August.
The S&P 500 trading higher on Tuesday with higher than average volume to close at 2979.39. The index moved down to 2957.01 at one point only to rally later in the day. We continue to believe the sideways action is constructive for a potential new leg higher soon. The RSI index remains above the 50 level, which is also constructive. The increase in volume over the last two days confirms our thoughts that buyers are now coming back into the markets.
We are currently long term bullish and short term 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.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, opinions or forecast provided herein will prove to be correct. “The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets.