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Market Direction Is Important –
Updated Chart of the S&P 500 and Secondary Signals
Of our Four secondary indicators under our MTI:
Relative Strength Index (RSI)-Negative
Chaikin Money Flow (CMF)-Negative
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks rallied on Friday on hopes that Greece would reach a deal with its creditors and avoid an exit from the euro zone. The S&P 500 ended a volatile week basically flat, logging a .01% loss.
This week data will be released on small business optimism, business inventories, retail sales, industrial production, housing starts, inflation and the Fed’s Beige Book.
In a speech on Friday in Cleveland, Federal Reserve Chair Janet Yellen maintained her call for a rate hike this year: “Based on my outlook, I expect that it will be appropriate at some point later this year to take the first step to raise the federal funds rate and thus begin normalizing monetary policy”. Yellen added a note of caution, stating that “the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate this first step”.
Last Tuesday the International Monetary Fund again warned the Fed of the risk of hiking rates too soon, saying that acting too early could stall the economy, reiterating a previous call for the FOMC to hold on a rate increase till next year. In its annual report on the US economy, the IMF said that the Fed should wait till it sees “clear signs of wage and price inflation”.
OPEC’s monthly output climbed in June to the highest level since August 2012. Production rose by 170,000 barrels to 31.28 million barrels per day. OPEC is currently pumping close to 1.3 million barrels above its production ceiling of 30 million per day.
From 2001 to 2011, almost 700 million people rose out of poverty, though most just barely, according to Pew Research. The reduction in global poverty led to a near doubling of the number of people considered middle income, but a majority of the world’s population (56%) were still considered low-income as of 2011.
All of the back and forth of the negotiations between Greece and its creditors has worn on the patience of the country’s neighbors. According to YouGov, 53% of Germans would prefer to see Greece leave the euro zone.