The U.K. Stockmarket ended the week higher. Sentiment was focused on US President Trump’s comments re the UK and Brexit. He said that a soft Brexit would “probably kill” any trade deal with the US but later stated that his relationship with Prime Minister May was strong and they will discuss trade. Our Breadth Indicator turned neutral this week and our Momentum indicator ticked higher.
The U.S. Stockmarket was higher this week as investors seemed to shrug off concerns about a global trade war and instead focused on positive assessments of the economy, e.g. Fed Chairman Powell’s comments “unemployment at its lowest level in years and inflation close to the central bank’s 2 percent target.” The Russell 2000 Smallcap index and the Nasdaq Comp reached new highs but actually Large Caps out-performed this week. Both our Breadth indicator and our Momentum indicator ticked up this week.
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