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:
Any thoughts of how gloomy January were faded memories by the close on Friday. The S&P 500 posted a 2% gain for the week, and logged it first record close of 2015 – the index had managed to set at least one record close every month for 18 months straight until January.
Small-caps gained as well, and the Russell 2000 ended the week with a 1.5% gain and a record close.
This week, the market will digest data on housing starts, industrial production, producer prices, leading economic indicators and the Fed’s meeting minutes.
With the recession in the rearview mirror, the majority of American households are still financially fragile, according to a new study by The Pew Charitable Trusts. Today 70% of households are grappling with financial strains on income, expenditures or wealth: “…many American families, even those with relatively high incomes, are walking a financial tightrope”. At the same time 55% of households are “savings-limited”, meaning they can replace less than one month’s income out of liquid savings, and have “little if any cushion to absorb an unexpected financial setback”.
Global demand for gold dropped last year as buying in India and China slowed, according to the World Gold Council. Total demand fell 4% to 3,924 tons following a record high 4,088 tons in 2013. While jewelry demand dropped 10%, investment rose 2%, and central bank buying increased 17% to 277.2 tons.
While overall trust in the government is near historic lows, there are some government agencies that are viewed positively by the public. According to the latest Pew Research Center national survey, 70% have a favorable view of the CDC, closely followed by NASA and the Department of Defense. Favorable opinions surpass unfavorable for seven of the eight agencies tested, with only the IRS viewed more unfavorably.