U.S. stock futures are higher to start the week as investors react positively to the Phase One trade deal announced on Friday. The preliminary deal suspends the U.S. tariffs on $160 billion worth of Chinese imports that were to take effect on 12/15/2109. China also announced better-than-expected industrial production and retail sales growth for November.
The S&P 500 closed at a new all-time high of 3176.28 while trading briefly at a high of 3182.26 last week. The new high did come with better than average volume, and the RSI index moved higher to support the move. Support will now possibly become 3154.26, and we feel the support could hold all week. The breakout comes after four days of sideways trading, which built a good base for a possible new leg higher.
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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