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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)-Positive
Chaikin Money Flow (CMF)-Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks closed lower on Friday, with the S&P 500 ending the week down .1%, its second consecutive weekly loss.
This week data will be released on existing home sales, durable goods, the Fed’s FOMC meeting minutes and the Conference Board’s leading economic index.
Small business optimism edged up in October, with the NFIB optimism index rising as “owners became much more positive about the economic environment last month, which suggests a longer-run view. In the nearer term, they are more optimistic about real sales growth and improved business conditions through the end of the year”.
Among the index components, four posted gains, five declined and one remained unchanged.
Home builder confidence gained in November, as the NAHB housing market index rose to 70, marking the highest level in 8 months. According to the NAHB, “November’s builder confidence reading is close to a post-recession high — a strong indicator that the housing market continues to grow steadily. However, our members still face supply-side constraints, such as lot and labor shortages and ongoing building material price increases.” The report went on to say that “demand for housing is increasing at a consistent pace, driven by job and economic growth, rising homeownership rates and limited housing inventory. With these economic fundamentals in place, we should see continued upward movement of the single-family housing market as we close out 2017.” Measures of current sales and buyer traffic advanced while a measure of sales expectations slipped.
The Atlanta Fed’s GDPNow forecast for fourth quarter growth rose to 3.4% following the release of housing starts data.
Builders broke ground on more homes in October as housing starts surged 13.7% to an annual rate of 1.29 million, marking the second highest level of the recovery. Building permits rose 5.9% to an annual pace of 1.3 million.