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:
Rallying on economic data on Thursday, the S&P 500 gained for the fourth straight day and posted its 28th record close for 2014. On Friday, the market had little reaction to the much anticipated Federal Reserve Symposium at Jackson Hole, with Fed Chair Janet Yellen basically saying just what the market already expected to hear. Tensions between Russia and Ukraine came back into focus, causing stocks to pull back, though the market finished with a gain for the third week in a row. The S&P 500 rose 1.7% for the week – it’s biggest gain since April, while the Dow ended up 2%.
The ten-year Treasury yield gained following Janet Yellen’s comments at Jackson Hole, ending the week 6 basis points higher – the largest weekly gain since July 3rd.
Source: Federal Reserve Bank of St. Louis
Suggesting that the economy is gaining traction, the Conference Board’s Leading Economic Index rose .9% in July – the sixth consecutive monthly gain. The report noted that “The pace of economic activity remained reasonably strong in July. Although retail sales were a little disappointing, hiring and industrial activity improved. July’s increase in the LEI, coupled with its accelerating growth trend, points to stronger economic growth over the coming months.”
The upcoming Labor Day holiday will see the highest number of US travelers since the recession. According to AAA projections, 34.7 million US residents will travel at least 50 miles over the holiday weekend, the most since 2008.