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:
Stocks suffered their worst day in three months last Thursday, in a sell-off sparked by fears of insolvency at a Portuguese bank. Stocks picked up steam late in the day on Friday – on slim volume – closing higher and trimming weekly losses. The S&P 500 ended the week down .9%, and the Dow finished .7% lower.
Small caps struggled through the week, unable to eek out a gain on Friday. The Russell 2000 Small Cap Index led the market lower during Thursday’s slide before recovering a portion of its losses.
The government posted a budget surplus of $70.5 billion in June, bringing the budget gap year-to-date to the smallest since 2008. The budget deficit for the first nine months of the 2014 fiscal year stands at $366 billion, down 28% from the same period one year ago.