U.S. futures were little changed a day after the S&P 500 and the Nasdaq recorded another record closing high. European markets were lower along with Asian markets due to a weak China manufacturing report. Alphabet (GOOGL) missed on Q1 revenues after the bell on Monday, and the stock is off 7% in premarket trading. Apple will report after the bell today.
The S&P 500 closed at another record high on Monday at 2943.03, but the move came on lower than average volume. We were looking for a follow-through move higher with better than average volume. We now feel that it would be good for the index to move back into the old trading range of 2908.53-2939.88 this week, and we feel a potential new leg higher can happen after some consolidation of the breakout on 4/23/2019.
Today the Federal Open Market Committee, FOMC, will begin a two-day meeting to determine the near-term direction of monetary policy. The committee meets eight times a year with the announcement of decisions on Wednesday’s. The FOMC is expected to not raise rates, but investors will want to hear their thoughts on the economic activity for the rest of the year.
We are currently long term bullish with short term caution.
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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