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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:
The market surged on Friday following a strong jobs report, with the S&P 500 finishing the week up .4% and closing at a fresh record high.
This week data will be released on small business optimism, business inventories, retail sales and the Job Openings and Labor Turnover Survey.
The economy added 255,000 jobs in July, following a solid gain in June. The unemployment rate held at 4.9% even as more workers entered the labor force, edging the labor force participation rate up to 62.8%. So far this year, job gains have averaged 186,000 per month.
The US trade deficit climbed 8.7% in June to a ten-month high of $44.5 billion, as imports rose 1.9% while exports inched up .3%. The trade gap with China rose to $29.8 billion, the highest since last November.
Source: Census Bureau
The Atlanta Fed’s GDPNow model is forecasting growth of 3.8% for the third quarter following the release of international trade data and the jobs report.
Consumers boosted their spending .4% in June, marking the third straight solid increase and wrapping up the second quarter with the biggest quarterly gain since the end of the recession. While purchases of big ticket items slipped, consumers spent more on entertainment, utilities and health care.
The manufacturing sector grew at a slower pace in July, with the ISM manufacturing index slipping to 52.6% after hitting a one-year high the month before. Measures of new orders and production were strong, while a measure of employment fell into negative territory.