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- Positive

4. Money Flow Index-MFI-Positive

More on the Market and the Economy:

After almost hitting its record high set in May 2015 earlier in the week, the S&P 500 slipped on Thursday and Friday to end with a .2% weekly loss, the first in four weeks.

Source: dshort.com

This week data will be released on small business optimism, retail sales, industrial production, inflation, housing starts and the Fed’s FOMC meeting announcement.

Speaking last week, Fed Chair Janet Yellen didn’t give any hints on the timing of a rate hike, but said that “I continue to think that the federal funds rate will probably need to rise gradually over time to ensure price stability and maximum sustainable employment in the longer run”, while offering an upbeat assessment of the economic outlook: “I see good reasons to expect that the positive forces supporting employment growth and higher inflation will continue to outweigh the negative ones”.

The World Bank cut its 2016 global growth forecast to 2.4%, down from a previous projection of 2.9%, due to “sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade, and diminishing capital flows”. Growth is expected to tick up to 2.8% in 2017.

The Atlanta Fed’s GDPNow forecast for second quarter growth held steady at 2.5% following data on wholesale trade.

There were a record number of available jobs in April, as openings rose to 5.79 million according to the JOLTS report, matching the previous record set in July 2015. However, companies were slow to fill those jobs, as the hiring rate fell to 3.5%.

Americans continue to be optimistic about the job market, with 43% saying that now is a good time to find a quality job. According to Gallup, “The dismal BLS employment report for May seems to have done little to shake Americans’ views about the job market, with the percentage of Americans saying it is a good time to find a quality job being on the higher end of Gallup’s trend since 2001”.

From the Census Bureau, a new infographic on public education spending, with per pupil spending for the nation amounting to $11,009: