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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
MACD- Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks climbed on Friday following a strong jobs report, with the S&P 500 closing at its highest level in a year and finishing the week up 1.3%.
This week data will be released on small business optimism, industrial production, inflation, the Job Openings and Labor Turnover Survey and the Fed’s Beige Book.
The release of the Fed’s FOMC meeting minutes gave no indication of the timing of the next rate hike: “Most participants judged that, in the absence of significant economic or financial shocks, raising the target rate for the federal funds rate would be appropriate if incoming information confirmed that economic growth had picked up, that job gains were continuing at a pace sufficient to sustain progress toward the Committee’s maximum-employment objective, and that inflation was likely to rise to 2% over the medium term”.
Bouncing back from a disappointing number in May, the economy added 287,000 jobs in June. The unemployment rate edged up to 4.9% as more people entered the work force – the labor force participation rate ticked up to 62.7%.
The US trade deficit expanded 10% in May to $41.1 billion on stronger demand for imports, which jumped 1.6% while exports slipped .2%.
Source: Census Bureau
The Atlanta Fed’s GDPNow model forecast for second quarter growth slipped to 2.4% following the release of trade deficit data.
Consumer credit rose by $18.6 billion in May, with revolving credit up 3% and non-revolving credit up 7.3% on an annual basis.
The service sector grew in June at the fastest pace in 7 months, as the ISM non-manufacturing index rose to 56.5. Measures of new orders and employment both climbed.