Wall Street is set for a muted open as investors await earnings from Microsoft (MSF) and Alphabet Inc. (GOOGL) after the close today. Meanwhile, the Nasdaq completed a full recovery from an 11% correction back in February. The recent increase in major equity indexes has been due to increased vaccine rollouts and historical monetary and fiscal support. The Federal Reserve will start its two-day meeting today and is expected to keep policy accommodative.
The S&P 500 traded in a tight range just below potential resistance at 4191.31 and closed at 4187.62. Volume was low, with only 1,931,892,096 shares traded, but low volume in this trading pattern is a good sign for a possible breakout. If the index should move through 4191.31, we feel new buyers will come and possibly restarting the recent uptrend. Absent any negative news; the next move should be a close at a new all-time high.
We are currently long-term bullish and short-term bullish.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJFS
Windsor Wealth Planners & Strategist
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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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