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Market Update

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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:

  1. Relative Strength Index (RSI)-Positive

  2. Chaikin Money Flow (CMF)-Positive

  3. MACD- Negative

  4. Money Flow Index-MFI-Positive

More on the Market and the Economy:

The market shook off the advanced GDP report on Friday, and the S&P 500 finished the day just shy of a record close. The index ended the week slightly lower, snapping a four-week winning streak.

Source: dshort.com

This week data will be released on manufacturing, consumer spending, the service sector and the jobs report.

At last week’s FOMC meeting, the Fed held rates unchanged while hinting at a future hike, stating that “near-term risks to the economic outlook have diminished”. The central’s banks statement also noted that the “labor market strengthened and that economic activity has been expanding at a moderate rate”.

The economy expanded 1.2% in the second quarter, as strong consumer spending was offset by the biggest drop in business investment since the recession.

The Atlanta Fed’s final GDPNow model forecast for second quarter growth slipped to 1.8% following the release of advance economic indicators from the Census Bureau.

Sales of new homes rose 3.5% in June to an annual rate of 592,000, marking the highest level in seven years. The supply of new homes on the market slipped to 4.9 months.

Pending home sales ticked up a modest .2% in June as “the reoccurring dilemma of strained supply causing a run-up in home prices continues to play out in several markets”, according to the National Association of Realtors. The NAR went on to note that “until inventory conditions markedly improve, far too many prospective buyers are likely to run into situations of either being priced out of the market or outbid on the very few properties available for sale”.

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