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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)-Negative
Chaikin Money Flow (CMF)-Positive
MACD- Negative
Money Flow Index-MFI-Positive
More on the Market and the Economy:
The S&P 500 finished the week with a .6% loss, but ended the month with a .5% gain and ended the quarter up 2.6%.
Source: dshort.com
This week data will be released on manufacturing, the service sector, the trade deficit, the jobs report and the FOMC meeting minutes.
The economy expanded at a faster pace than initially estimated in the first quarter, with GDP raised to 1.4% on stronger consumer spending and exports.
Pending home sale slipped .8% in May, marking the third straight monthly decline as low inventory continues to weigh on the market. According to the National Association of Realtors, “monthly closings have recently been oscillating back and forth, but this third consecutive decline in contract activity implies a possible topping off in sales. Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast…The lack of listings in the affordable price range are creating lopsided conditions in many areas where investors and repeat buyers with larger down payments are making up a bulk of the sales activity. Meanwhile, many prospective first-time buyers can’t catch a break. Prices are going up and there’s intense competition for the homes they’re financially able to purchase”.
The Atlanta Fed’s GDPNow forecast for second quarter growth slipped to 2.7% following the release of international trade data.
Consumer spending edged up a slight .1% in May, while the savings rate jumped to 5.5%, marking an 8-month high. Inflation fell .1% – the second decline in three months.
Americans will spend an estimated $7.1 billion on food to celebrate the Fourth of July this year, up from $6.8 billion last year, according to the National Retail Federation. Cookouts top the list of holiday plans, with 162 million Americans spending an average $73.42 per person.
Source: National Retail Federation