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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:
Last Thursday, stocks closed higher for a third straight day of post-Brexit recovery, with the S&P 500 finishing the second quarter up 1.2%. With a modest gain on Friday, the S&P 500 logged its best week of 2016 with a 3.2% gain.
This week data will be released on the service sector, the trade deficit, the jobs report and the FOMC meeting minutes.
Economic growth for the first quarter was revised up to 1.1%, as exports rose instead of declining and business investment was better than previously reported.
The Atlanta Fed’s GDPNow model forecast for second quarter growth inched down to 2.6% following data on construction spending.
The Brexit vote will have negative repercussions on the global economy, as uncertainty about the future between the UK and the EU “is likely to dampen growth in the near term”, according to the International Monetary Fund.
Speaking last Friday, St. Louis Fed President James Bullard said that the Brexit vote may have very little, if any, impact on the US economy: “I think the verdict so far is that Brexit will not have big impact on the U.S. – possibly zero”.
Last week, European Union leaders took the historic step of meeting without one of their members for the first time, calling for an orderly British exit from the bloc.
After opening their wallets in April, consumers slowed their spending in May, with outlays ticking up .4%. Consumers dipped into savings to fund their purchases, with the savings rate falling slightly to 5.3%.
Manufacturers grew in June at the fastest pace in 15 months, as the ISM manufacturing index climbed to 53.2% – the highest since February 2015. Measures of new orders and employment picked up.
After the months of steady gains, pending home sales slipped 3.7% in May. According to the National Association of Realtors, “buyers continue to be frustrated by the tense competition and lack of affordable homes for sale in their market” as “there are simply not enough homes coming onto the market to catch up with demand and to keep prices more in line with inflation and wage growth.”
From the Census Bureau, an interesting infographic on 30-year-olds, then and now: