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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-Negative
More on the Market and the Economy:
Falling oil prices took a toll on the markets last week, ending with sharp losses on Friday. The S&P 500 ended the day down 1.94% and closed the week with a 3.79% loss – the steepest weekly decline since August.
This week data will be released on housing starts, industrial production, inflation, the Conference Board’s leading economic indicators and the Fed’s FOMC announcement.
The Atlanta Fed’s GDPNow model is forecasting growth 1.9% for the fourth quarter, up from 1.5%, following Friday’s retail sales report.
Household wealth declined 1.4% in the third quarter, slipping $1.23 trillion to $85.2 trillion, according to the Federal Reserve. The decline came on a slump in stock prices. At the same time, households slowed borrowing as debt rose 1.5% – the slowest pace in almost two years.
The American middle class is losing ground, according to Pew Research, as middle-income Americans are no longer the majority and are falling behind financially. Earlier this year, there were 120.8 million adults in middle-class households, compared to 121.3 million in lower and upper income households. Last year, median income for middle-class households was 4% lower than in 2000.
Gas prices are projected to average $2.04 per gallon in December, according to the Energy Information Administration, then rise to $2.36 per gallon going into 2016.