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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)-Negative
Chaikin Money Flow (CMF)-Negative
Money Flow Index-MFI-Negative
More on the Market and the Economy:
Stocks closed higher on Friday, and the S&P 500 end the week up .7%.
This week data will be released on consumer spending, construction spending, manufacturing, pending home sales, GDP and the jobs report.
Speaking on Friday at the Fed’s annual Jackson Hole symposium, chair Janet Yellen focused primarily on financial regulations, saying that any changes “to the regulatory framework should be modest”. Briefly referencing the economy, Yellen said that “substantial progress has been made toward the Federal Reserve’s economic objectives of maximum employment and price stability”.
Treasury Secretary Steven Mnuchin told reporters on Friday that he is “100% confident” that “the debt ceiling will be raised in September”.
Existing home sales slipped 1.3% in July to an annual rate of 5.44 million, and the inventory of available homes fell 1% to 1.92 million. According to the National Association of Realtors, “buyer interest in most of the country has held up strongly this summer and homes are selling fast, but the negative effect of not enough inventory to choose from and its pressure on overall affordability put the brakes on what should’ve been a higher sales pace. Contract activity has mostly trended downward since February and ultimately put a large dent on closings last month”.
The Atlanta Fed’s GDPNow forecast for third quarter growth slipped to 3.4% following the release of housing data last week.
New home sales dropped 9.4% in July to an annual pace of 571,000; at the current sales pace it would take 5.7 months to exhaust the inventory of available new homes.
After rising 6.4% in June, durable goods orders fell 6.8% in July, marking the biggest decline since August 2014, led by a drop in aircraft orders.