U.S. markets are selling off this morning with S&P 500 futures down of 54 points to start the week. China plans to impose $60 billion worth of tariffs on 5,140 products produced in the U.S. Also, the yield between the three-month treasury and the 10-year inverted for the second time in a week. Traders are, at this point, moving into safe assets to protect against further losses.
The S&P 500 finished the week strong with a good move off support at 2792.81. Our hope is for the low of Friday, 2825.39, to act as support to prevent possible more selling of stocks. As of 8:49 am S&P 500 futures were at 2832.70, so at this point, the low of Friday is still in play to act as support. If that level should be breached, we are looking for possible support at 2792.81 and then 2787.82. Our thoughts are that equity markets should be avoided for new buys until there is a resolution to the trade war.
We are currently long term bullish with 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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