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
Money Flow Index-MFI-Negative
More on the Market and the Economy:
After a week of mixed economic data and headlines about a strong dollar, stocks sold off on Friday, with the S&P 500 ending the week down .9% and posting its third straight weekly decline. The dollar’s rally (hitting a 12-year high against the euro) has pulled stocks down 3% since March 2nd.
Small cap stocks bucked the trend, with the Russell 2000 logging a 1.2% gain for the week (smaller firms tend to be more focused in the US and have less exposure to currency fluctuations).
This week data will be released on industrial production, housing starts, leading economic indicators as well as the Fed’s FOMC meeting announcement.
Household net worth climbed by $1.5 trillion in the fourth quarter to $82.9 trillion, according to the Federal Reserve’s flow of funds survey. The 1.9% increase in net worth for households and non-profits was helped by a $742 billion gain in equities and a $356 billion gain in real estate value.
The federal budget deficit will be $486 billion in 2015, and will total $7.2 trillion over 2016-2025 under current law, according to the Congressional Budget Office. According to an analysis of President Obama’s 2016 budget, the proposals would have “no significant net effect on the deficit in 2015 but would reduce deficits relative to those in CBO’s baseline in each year between 2016 and 2025”. Over that period the net reduction in the deficit would total $1.2 trillion, and would come about in part due to a reduction in funding for military operations and increased tax receipts.
Americans stand out on individualism and work ethic, according to a Pew Research survey of 44 countries.