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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:
The market ended the holiday-shortened week on a positive note: the S&P 500 posted a modest gain on Friday and logged a 2.1% gain for the week. The Dow finished the week up 2% – its best week since March.
This week data will be released on industrial production, retail sales, housing starts, inflation, leading economic indicators and the Fed’s FOMC meeting announcement.
The US budget deficit fell to $64 billion in August, a 50% drop from one year ago – however, most of the improvement was due to a shift in the timing of benefit payments (without any shifts, the deficit would have totaled $112 billion). With August being the second-to-last month of the fiscal year, the budget is on track to record the smallest deficit in 8 years.
In a letter to Congress on Thursday, Treasury Secretary Jacob Lew asked lawmakers to move to increase the debt ceiling, saying that the emergency measures that have been employed since March will last until October or early November.
China will continue to lose steam, and growth will slow across other large economies, according to the OECD’s latest leading indicators: “Growth momentum is anticipated to moderate in Canada as well as in the United Kingdom and the United States…on the other hand, the outlook continues to deteriorate for China…pointing more strongly to a loss of growth momentum”.
According to the latest projections from the Congressional Budget Office, the economy will grow 2% this year, and 3.1% in 2016.
The CBO also sees upward pressure on interest rates on the horizon.
An interesting infographic on manufacturing in the US: