Wall Street is set to open lower after a report that the U.S. will move forward with possible curbs on capital inflows into China. Also, a South China Morning Post report claimed China had lowered its expectations ahead of the trade talks on Thursday.
The S&P tried to rally on Monday but sold off let in the day to close at 2938.79, which was below support at 2945.50 and the 50-day moving average at 2940.62. The RSI index turned lower, and volume was, once again, lower than average. New potential support will be at 2921.86 if the selling should continue. The lack of volume over the last three trading sessions could mean investors are uncertain and unwilling to hold potential riskier assets for the long term.
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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