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 Economy and the Market:
Modest gains on Friday took the S&P 500 and the Dow to new records highs. The S&P 500 ended the week by logging its third consecutive record close (and its 22nd record close for the year), and posted a gain of 1.4% for the week. The Nasdaq Composite posted its strongest close in 14 years.
The Federal Reserve continued to taper its monthly bond-buying program, cutting purchases by another $10 billion to $35 billion. While unemployment has come down, and there are signs pointing to inflation firming, the Fed made it clear there is no sense of urgency to raise interest rates. It was also clear that the Fed is ready to let the data play out, and Fed Chair Janet Yellen said the central bank won’t be bound to “mechanical” formulas for starting rate hikes.
The Fed slashed its outlook for the year, cutting its growth estimate to 2.1 to 2.3% from a previous 2.8 to 3%.
Source: Federal Reserve
The Conference Board’s Leading Economic Index increased in May to a reading of 101.7. The “broad based” increase marks the fourth consecutive rise. According to the report, “the pace of economic activity continued to gain traction in May, while the trend in the LEI remains positive. Going forward, the biggest challenge is to sustain the rise in income growth which will drive consumption”.