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)-Positive
Chaikin Money Flow (CMF)-Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Last week the S&P 500 broke above 2,000 for the first time (the index cleared 1,000 back in 1998), and with modest gains on Friday, the index posted its fourth straight weekly gain, and its 32nd record close of the year. The index recorded its best August in 14 years, ending the month with a 3.8% gain (the index gained 6.07% in August 2000) – though volume for the month was the lowest in nearly ten years.
Last week’s gains put the index 193% above the 2009 bottom (and 28% above the previous 2007 top). The market will have a fair amount of data to digest during the holiday-shortened week, with releases due for construction spending, manufacturing, the Fed’s Beige Book and the jobs report.
The Commerce Department reported that the economy expanded at a slightly faster pace in the second quarter than previously reported, as businesses invested in more buildings and equipment. GDP was revised up to 4.2% after initially being reported at a 4% pace. Business investment in structures like office buildings increased 9.4% and spending on equipment rose 10.7%. Consumer spending was unchanged.