U.S. stock futures are higher on optimism for a partial trade deal, and a delay in the scheduled U.S tariffs increases. President Trump is set to meet with Chinese Vice Premier Liu He later today to continue negotiations. Also, U.S. import prices rose less than expected, suggesting that imported inflation will remain low. Data for August was an increase of 0.2% instead of an expected 0.5% increase. The data could support the expectations of a Federal Reserve rate cut later this month.
The S&P 500 rallied again on Thursday and briefly moved above resistance at 2945.50 but only closed higher on the day at 2938.13. The index is now in a strong position near the upper end of the 2891.85-2945.520 trading range. Volume picked up marginally, and the RSI index did move higher and closed at 48.35. We feel good that potentially new buying has come into the markets, and we could see a rally out of the current trading range soon.
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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