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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)-Positive
MACD- Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks ended the month of January with a surge and booked the second straight weekly gain. The S&P 500 logged its best day of the year on Friday, gaining 2.48%, rising out of correction territory and ending the week up 1.8%. The index posted a 5.1% loss for the month.
Source: dshort.com
This week data will be released on consumer spending, manufacturing, the service sector, the trade deficit and the jobs report.
At last week’s meeting, the Federal Reserve left interest rates unchanged, noting that the FOMC is “closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation”. In its statement, the central bank also said that “economic growth slowed late last year” and it expects “only gradual increases in the federal funds rate”.
The economy slowed in the fourth quarter, with .7% growth in the latest GDP estimate. Growth was weighed down by a smaller build-up in business inventories and slower consumer spending with unseasonably mild weather cutting utility spending. In 2015, the economy expanded 2.4%.
A rough start to the year for the stock market didn’t rattle consumers, as the Conference Board’s consumer confidence index rose in January: “Consumer confidence improved slightly in January, following an increase in December. Consumers’ assessment of current conditions held steady, while their expectations for the next six months improved moderately. For now, consumers do not foresee the volatility in financial markets as having a negative impact on the economy.”
Source: dshort.com
Sales of new homes rebounded in December, jumping 10.8% to an annual pace of 544,000. There were 501,000 new homes sold in 2015 – a 14.5% rise over 2014.
Source: NAHB
According to a Bloomberg study, by 2018, Brunei will be the country most reliant on oil exports for its economy, accounting for over 60% of GDP:
