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- Negative
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Sliding oil prices and concerns about the health of the global economy rattled the market and snapped seven weeks of gains. The S&P 500 dropped 1.6% on Friday, and finished the week with a 3.5% loss – its worst week since May 2012. The Dow fell 3.8% – its worst week since September 2011.
Oil slumped further last week as data showed an increase in US supplies and OPEC cut its forecast for demand for 2015 by 300,000 barrels per day to 28.9 million…the lowest since 2003.
This week the market will digest data on industrial production, housing starts, consumer prices, leading indicators and the Fed’s FOMC meeting announcement.
Household net worth in the US fell by $140.9 billion to $81.3 trillion in the third quarter, according to the Fed’s Flow of Funds survey, as the value of stock and mutual fund holdings declined. The value of financial assets held by American households dropped by $315.5 billion.
Source: calculatedriskblog.com
Before the recession, household net worth peaked at $67.9 trillion in the second quarter of 2007 before dropping to $54.9 trillion in the first quarter of 2009 (a $13 trillion loss). Household net worth is now $1.3 trillion above the prerecession peak.
Source: Federal Reserve Flow of Funds Report