Market Direction Weekly Closing Numbers

Market Direction: BULLISH alert issued 6/2/2016

The economy

What a ride this week has been for the stock market. Many investors believed the market was going into a full blown decline possibly even a recession. How three or four strong days can settle the noise of negative comments for the overall direction. Next week is a short week for trading due to the 4th of July holiday. We should be able to get more clarity which direction the stock market is going. Let’s review…

The rebound in equities was attributed to multiple things as the week went on. At first it was described as a function of oversold conditions on a short-term basis, then it was extended by hopes for stimulus from global monetary authorities like the Bank of England and European Central Bank. Thursday's 1.4% gain, which put the S&P 500 near its opening level from last Friday, occurred amid month-end and quarter-end flows.

Stocks displayed modest strength on Friday, but the bullish attitude was not shared by other markets. For instance, the dollar/yen pair retreated into Friday and remained near its low throughout the Wall Street session. The currency pair ended the week near 102.50, wiping out more than two days of slight gains. Treasuries ended the week with solid gains, pressuring the 10-yr yield to a Friday test of an all-time low near 1.381%. Gold was also a noteworthy winner, posting its fifth consecutive weekly gain and closing at a two-year high at $1338.90.

The rising hopes for global stimulus relegated rate hike expectations to an afterthought. The fed funds futures market is pricing in just an 18.2% chance of a rate hike in December or February.

$tockMarketDirection proprietary model is currently BULLISH. We strongly encourage you to monitor positions closely, exercise proper money management strategies and follow us at $tockMarketDirection for ALERTS we may issue advising a change in the current market direction. Stay tuned and follow us. If you have a testimonial or comment of how this website has helped you we would like to know, write us. Share with a friend.

By the numbers the weekly closing index numbers compared to the initial BULLISH recommendation closing numbers: 

Stock Market Closing Numbers
compared to Recommendation Numbers
	6/2/2016	7/1/2016	Difference
Dow Jones	17,838.56	17,949.37	110.81
Nasdaq	4,971.36	4,862.57	108.79
S&P 500	2,105.26	2,102.95	2.31

Register at: http://www.stockmarket-direction.com/