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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)-Negative
Money Flow Index-MFI-Positive
More on the Market and the Economy:
The S&P 500 finished the week up .8%, and ended the month flat. The Index ended the quarter with a 5.5% gain, its sixth straight quarterly advance.
This week data will be released on manufacturing, the service sector, the trade deficit, the Fed’s meeting minutes and the jobs report.
The US economy expanded 2.1% in the fourth quarter, a faster pace than the previous estimate of 1.9%, as consumer spending was revised up to 3.5%.
Consumer confidence jumped in March to the highest level in sixteen years as the Conference Board’s index reached 125.6 – the highest since December 2000. According to the Conference Board, “Consumers’ assessment of current business and labor market conditions improved considerably. Consumers also expressed much greater optimism regarding the short-term outlook for business, jobs and personal income prospects. Thus, consumers feel current economic conditions have improved over the recent period, and their renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months”.
The Atlanta Fed’s GDPNow forecast for first quarter growth slipped to .9% following the release of consumer spending data.
Inflation rose to 2.1% in February- topping 2% for the first time in almost five years. Consumer spending inched up .1% while incomes rose .4%, boosting the savings rate to 5.6%.
Pending home sales climbed 5.5% in February to the second-highest level in a decade. According to the National Association of Realtors, “Buyers came back in force last month as a modest, seasonal uptick in listings were enough to fuel an increase in contract signings throughout the country. The stock market’s continued rise and steady hiring in most markets is spurring significant interest in buying, as well as the expectation from some households that delaying their home search may mean paying higher interest rates later this year”.