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Market Update

Market Direction Is Important –

Updated Chart of the S&P 500 and Secondary Signals

Of our Four secondary indicators under our MTI:

  1. Relative Strength Index (RSI)-Negative

  2. Chaikin Money Flow (CMF)-Negative

  3. MACD- Negative

  4. Money Flow Index-MFI-Negative

More on the Market and the Economy:

Stocks rebounded on Friday, erasing declines from the previous four days. The S&P 500 jumped 1.2% for the day – the biggest gain since March 4th – after coming within 60 points of wiping out its gains for the year and closing below its 100-day simple moving average on Thursday. The index ended the week up .3%.

Source: dshort.com

Small cap stocks outperformed on the upside, with the Russell 2000 rallying to a gain of 1.5% for the week.

The 10-year Treasury yield fell to a 14-month low following the launch of US airstrikes in Iraq.

In the latest Report on the Economic Well-Being of US Households, the Federal Reserve reported that a sizable percentage of the population is not prepared for retirement. According to the report, nearly one-third of non-retired households have no retirement savings or pension. One quarter of survey respondents have not done any retirement planning at all, and among those who have, 25% do not know how they will pay for expenses during retirement. The Fed concluded that “when it comes to planning and saving for retirement, the survey results tell a somewhat cautionary tale”.

The report also found that 25% of families are under economic stress stemming from the aftershock of the recession; 42% of respondents have put off a major purchase because of the crisis, and 36% now plan to retire later.

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