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 Economy:
The Conference Board’s Leading Economic Index increased in April to a reading of 101.4, marking the third consecutive increase.The increase was “driven largely by improving housing and financial market conditions”.The report suggests “the economy will continue to expand, and may even pick up steam through the second half of the year.”Conference Board economist Ken Goldstein noted that “despite a brutal winter which brought the economy to a halt, the overall trend in the leading economic index has remained positive.If consumers continue to spend, and businesses pick up the pace of investment, the industrial core of the economy will benefit and GDP growth could move closer towards the 3 percent range”.
The market rallied on Wednesday with the release of the FOMC minutes, and continued to climb on positive housing market data through the Friday close (though on the lowest volume of the year).The S&P 500 gained 1.2% for the week, and closed above 1,900 for the first time.
Small-cap stocks fared well for the week.The Russell 2000 Small Cap Index gained 2.1% and crossed above its 200-day moving average on Thursday before continuing to rally through the Friday close.