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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)-Positive
Chaikin Money Flow (CMF)-Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Despite an unimpressive jobs report, the S&P 500 logged a gain on Friday, closing at a new record high and finishing the week up 1%.
This week data will be released on the service sector, consumer credit and the Job Openings and Labor Turnover Survey.
The economy added a modest 138,000 jobs in May, while the unemployment rate slipped to 4.3%, marking the lowest level since 2001, as more people left the labor force. Healthcare providers and restaurants led hiring, while retailers continued to scale back.
The trade deficit widened 5.2% to $47.6 billion in April, as exports dipped .3% while imports rose .8%.
Source: Census Bureau
The Fed’s Beige Book reported that the economy continued to grow at “modest to moderate” pace, while consumer spending softened and “labor markets continued to tighten, with most districts citing shortages across a broadening range of occupations and regions”. Also according to the report, “a majority of districts reported that firms expressed positive near-term outlooks; however, optimism waned somewhat in a few districts”.
The Atlanta Fed’s GDPNow forecast for second quarter growth fell to 3.4% following last week’s unemployment report.
After declining in March, pending home sales dipped again, falling 1.3% in April. According to the National Association of Realtors, “much of the country for the second straight month saw a pullback in pending sales as the rate of new listings continues to lag the quicker pace of homes coming off the market. Realtors are indicating that foot traffic is higher than a year ago, but it’s obviously not translating to more sales…Prospective buyers are feeling the double whammy this spring of inventory that’s down 9.0 percent from a year ago and price appreciation that’s much faster than any rise they’ve likely seen in their income”.
Manufacturing was strong in May, with the ISM manufacturing index edging up to 54.9%. A measure of new orders rose while a measure of prices declined.
Construction spending slowed in April, slipping 1.4% to an annual rate of $1.22 trillion.