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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)-Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks finished lower following a choppy session on Friday, and the S&P 500 closed the week with a gain of .9%.
This week data will be released on new home sales, pending home sales, durable goods, consumer confidence and GDP.
The economy continued to expand at a modest pace, according to the Fed’s Beige Book, as “labor markets remained tight, and employers in most Districts had more difficulty filling low-skilled positions, although labor demand was stronger for higher skilled workers”.
The Conference Board’s leading economic index increased .4% in March: “the March increase and upward trend in the U.S. LEI point to continued economic growth in 2017, with perhaps an acceleration later in the year if consumer spending and investment pick up. The gains among the leading indicators were very widespread, with new orders in manufacturing and the interest rate spread more than offsetting declines in the labor market components in March”.
Builder confidence slipped in April but still held at a solid level. “Even with this month’s modest drop, builder confidence is on very firm ground, and builders are reporting strong interest among potential home buyers”, according to the NAHB. Measures of current sales, sales expectations and foot traffic edged down.
Builders started construction on fewer homes in March, as housing starts fell 6.8% to an annual rate of 1.22 million. At the same time permits rose 3.6% to an annual 1.26 million.
The Atlanta Fed’s GDPNow forecast for first quarter growth held steady at .5% following last weeks residential construction data.