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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)-Negative
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks rallied on the last day of the first quarter, and the S&P 500 ended the week with a 2.1% gain. The index ended the month down 2.7% and broke a long streak of quarterly gains, logging a 1.2% loss for the quarter.
This week data will be released on manufacturing, the service sector, the trade deficit and the jobs report.
The economy grew at a faster pace in the fourth quarter than previously estimated, as GDP was revised up to 2.9% from 2.5%, driven by the biggest rise in consumer spending in three years. Growth was also boosted by stronger business investment, which was raised to 6.3%.
Pending home sales climbed 3.1% in February, though a lack of affordability and tight inventory continue to weigh on activity. According to the National Association of Realtors, “The expanding economy and healthy job market are generating sizeable homebuyer demand, but the miniscule number of listings on the market and its adverse effect on affordability are squeezing buyers and suppressing overall activity…Homeowners are already staying in their homes at an all-time high before selling, and any situation where they remain put even longer only exacerbates the nation’s inventory crunch. Even if new home construction starts picking up at a faster pace this year, as expected, existing sales will fail to break out if these record low supply levels do not recover enough to meet demand”.
The Atlanta Fed’s GDPNow forecast for first quarter growth rose to 2.4% following the release of wholesale inventories data.
With Easter now past, spending for the holiday this year was projected to total $18.2 billion, the second highest on record. An estimated 81% of Americans celebrated the holiday, spending an average $150 per person, with $5.7 billion spent on food, $2.9 billion on gifts and $780 million on greeting cards, according to the National Retail Federation.