U.S. Consumer Confidence Edges Up in June, Intermarket Signals Show Mild Improvement
As we do each month, we assess U.S. consumer confidence by analyzing a few intermarket ratios.
The current takeaway is a slight improvement in sentiment.
The relative strength ratio between the staples sector and discretionary sector shows a rebound in discretionary stocks during May, followed by a period of sideways movement in June. This suggests that the sharp decline in consumer sentiment has come to a halt, but the recovery remains slow, with considerable uncertainty still to be absorbed.
A bearish crossover between the 50-day and 200-day moving averages signals a potential further recovery in discretionary spending, which in turn points to a more optimistic outlook for the coming months.
