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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
MACD- Negative
Money Flow Index-MFI-Positive
More on the Market and the Economy:
The S&P 500 finished flat on Friday but managed a slight gain for the week.
This week data will be released on new homes sales, existing home sales and the Conference Board’s leading economic indicators.
At last week’s FOMC meeting, the Fed raised its benchmark rate .25%, marking the third rate hike in a year and a half, remaining on track for one more increase this year.
Small business optimism held steady in May, with the NFIB index unchanged at 104.5. According to the NFIB, “the remarkable surge in optimism that began last year right after the election shows no signs of slowing down. Small business owners are highly encouraged by the President’s regulatory reform agenda, and they remain optimistic there will be tax reform and health-care reform. This is a policy-driven phenomenon”. Also according to the report, “The tight labor market has been a persistent problem for small business owners for the past several months, and the problem appears to be getting worse”.
Among the index components, five increased, four decreased and one remained unchanged.
The Atlanta Fed’s GDPNow forecast for second quarter growth dipped to 2.9% following last week’s housing starts data.
Builder confidence weakened slightly in June, with the NAHB index declining to 67. According to the NAHB, “as the housing market strengthens and more buyers enter the market, builders continue to express their frustration over an ongoing shortage of skilled labor and buildable lots that is impeding stronger growth in the single-family sector”. Measures of current sales, sales expectations and buyer traffic slipped.
Construction on new homes slowed in May for the third month in a row, falling 5.5% to an annual rate of 1.09 million.