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Market Update

Market Direction Is Important –

Updated Chart of the S&P 500 and Secondary Signals

Of our Four secondary indicators under our MTI:

  1. Relative Strength Index (RSI)-Negative

  2. Chaikin Money Flow (CMF)-Positive

  3. MACD- Negative

  4. Money Flow Index-MFI-Negative

More on the Market and the Economy:

Negative news overshadowed some respectable data last week, and the market ended the month of July on a sour note last Thursday, with Argentina’s debt default and the biggest jump in labor costs in more than five years rattling stocks. The S&P 500 and the Dow both posted their first monthly declines since January, with the S&P 500 logging a loss of 1.51% and the Dow slipping 1.6%. The S&P 500 dropped below its 50-day moving average for the first time in two months, and the Dow broke below its 50 DMA, continuing its decline to reach the highest percentage below its 50 DMA since February.

The momentum from Thursday’s sell-off continued into Friday, and the S&P 500 ended with its worst weekly loss in two years, down 2.7% for the week (closing 1.46% below its 50 DMA). The Dow lost 2.8% for the week (and closed 1.05% above its 200 DMA), and the Russell 2000 small-cap index fell 2.6% (ending the week 3.87% below its 50 DMA, and 2.6% below its 200 DMA).

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