Wall Street was set to open lower as investors are now awaiting an interest rate decision on Wednesday. The Federal Reserve is expected to lower by 25 basis points and provide support for a slowing economy. Markets will also be monitoring the next round of U.S. – China trade talks that resume on Thursday.
The S&P 500 closed higher on Monday at 2997.96 but is now sitting below potential support at 3000.00. The RSI index turned down on the day to close at 59.75 all on lower volume. We feel this is more of the sideways trading action that is needed before an attempt at new highs. Potential support is now at 2989.43 just below where the index will open to start Tuesday.
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.
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