U.S. stock markets are set to open flat Monday morning in spite of an encouraging economic report out of China. The Chinese reported that Manufacturing PMI for November increased to 50.2 from 49.3 beating expectations. The report showed a move into economic expansion for the first time since April. Also, online sales over the holiday week came in at record numbers and are expected to continue for Cyber Monday.
The S&P 500 pulled back from an all-time high at 3154.26 to close at 3140.98 on Friday. The RSI index moved out of the overbought level to close at 69.34, which is possible a short term sell signal. However, we feel that any selling will be met with buying soon, and potentially move the markets back to new highs. Current potential support is at 3133.83, where we will be looking for buyers to step into the market.
We are currently long-term bullish, and short-term cautious.
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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