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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)-Positive
Chaikin Money Flow (CMF)-Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks finished the holiday-shortened week by snapping a five-week winning streak. The S&P 500 ended the week down .7%.
This week data will be released on consumer spending, pending home sales, manufacturing and the jobs report.
The economy grew 1.4% in the fourth quarter, up from a previous estimate of 1%, getting a boost from a gain in consumer spending.
The Atlanta Fed’s GDPNow model is forecasting 1.4% growth for the first quarter, down from 1.9% following the release of data on durable goods manufacturing.
Following two strong months, sales of existing homes dropped 7.1% in February amidst low supply levels, to an annual pace of 5.08 million. According to the National Association of Realtors, “the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers… The overall demand for buying is still solid entering the busy spring season, but home prices and rents outpacing wages and anxiety about the health of the economy are holding back a segment of would-be buyers”. The inventory of unsold homes stands at a 4.4 month supply at the current sales pace.
Sales of new homes rose 2% to an annual pace of 512,000, while prices rose 6.2% to a median $301,400.