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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)-Negative
Chaikin Money Flow (CMF)-Positive
MACD- Negative
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Amid concerns about this week’s ‘Brexit’ referendum, stocks declined on Friday, and the S&P 500 ended the week down 1.2%.
Source: dshort.com
This week data will be released on existing home sales, new home sales, durable goods orders and the Conference Board’s leading economic indicators.
The Federal Reserve left rates unchanged at last week’s FOMC meeting, and hinted at a slow pace to rate hikes. According to the statement, “the Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run”. The Fed’s ‘dot plot’ showed that 6 of 17 members anticipated only one rate increase this year – up from just one member in March.
Speaking at a press conference following the FOMC announcement, Fed Chair Janet Yellen expressed concern, saying that “vulnerabilities in the global economy remain” and that the Fed’s “cautious approach to policy remains appropriate”.
The Atlanta Fed’s GDPNow model is projecting growth of 2.8% for the second quarter.
Small business optimism inched up slightly in May, as the NFIB optimism index rose to 93.8, marking the second consecutive gain after a string of declines. According to the NFIB, May’s gain was a “negligible increase showing no real enthusiasm for making capital outlays, increasing inventories, or expanding”.
Of the index’s ten components, four gained, four declined and two were unchanged.
After holding steady for four months, builder confidence rose in June, with the NAHB housing market index rising two points to 60. “Rising home sales, an improving economy and the fact that the HMI gauge measuring future sales expectations is running at an eight-month high are all positive factors indicating that the housing market should continue to move forward in the second half of 2016”, according to the NAHB.
Retail sales picked up .5% in May, with widespread gains as sales rose at auto dealers, restaurants, clothing stores and gas stations.
Inflation ticked up in May as rising rents and higher gas prices drove consumer prices up .2%.