U.S. stock futures were down to start the day but turned quickly after the release of the monthly jobs report. Nonfarm payrolls increased by 136,000 jobs in September, and the unemployment rate dropped to a near 50-year low of 3.5%. However, monthly wage growth was unchanged, and manufacturing payrolls declined for the first time in six months.
The S&P 500 moved below support at 2874.93, touched the 2855.94, and then rallied back to close higher at 2910. The RSI index also turned higher, so markets have potentially found a short-term bottom. The index will need a follow-through day soon with better than average volume before we move our market stance back to short bullish. Potential support will now be at the 10/2/2019 high of 2974.78.
We are currently long term bullish and short term bearish.
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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