“You work hard for your money. We’ll work hard to protect it.”
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:
The S&P 500 logged a modest gain on Friday, enough to close at a new record high and finish the week with a 1.4% gain.
This week data will be released on consumer spending, pending home sales, manufacturing, construction spending, the trade deficit, the unemployment report and the Fed’s Beige Book.
The economy expanded at a faster pace than previously estimated in the first quarter, as GDP was revised up to 1.2% on stronger consumer spending and business investment.
The release of the Fed’s latest FOMC meeting minutes showed that most members anticipate the next rate hike “soon”, though officials were divided on the pace of hikes, as several believe it may be appropriate to start raising rates at a faster pace, while a few supported a slower pace.
The Atlanta Fed’s GDPNow forecast for second quarter growth slipped to 3.7% following the release of data on existing home sales.
Existing home sales slipped 2.3% in April to an annual rate of 5.57 million, weighed by low inventory. According to the National Association of Realtors, “last month’s dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2 percent, and new and existing inventory is not keeping up with the fast pace homes are coming off the market. Demand is easily outstripping supply in most of the country and it’s stymieing many prospective buyers from finding a home to purchase… Realtors continue to voice the frustration their clients are experiencing because of the insufficient number of homes for sale. Homes in the lower- and mid-market price range are hard to find in most markets, and when one is listed for sale, interest is immediate and multiple offers are nudging the eventual sales prices higher”.
Sales of new homes dropped 11.4% in April to an annual pace of 569,000, after jumping to a 10-year high in March.