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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
Money Flow Index-MFI-Positive
More on the Market and the Economy:
The S&P 500 closed at a record high on Friday, finishing the week up .70% and marking the fifth straight weekly gain.
This week data will be released on pending home sales, construction spending, manufacturing, the service sector, GDP and the Fed’s Beige Book.
The release of the Fed’s meeting minutes showed that “many” officials supported raising rates “fairly soon if incoming information on the labor market and inflation was in line with or stronger” than expected. The minutes also showed that participants see “only a moderate risk” that inflation will rise above the target.
Sales of existing homes started out 2017 at the fastest pace in nearly a decade. Sales jumped 3.3% in January to an annual pace of 5.69 million, the strongest since February 2007. According to the National Association of Realtors, “Much of the country saw robust sales activity last month as strong hiring and improved consumer confidence at the end of last year appear to have sparked considerable interest in buying a home. Market challenges remain, but the housing market is off to a prosperous start as homebuyers staved off inventory levels that are far from adequate and deteriorating affordability conditions.”
New home sales rose 3.7% in January to an annual rate of 555,000. At the current sales pace, the supply of available homes stands at 5.7 months.
US household debt rose $226 billion in the fourth quarter to a total $12.58 trillion, marking the highest level since 2008, according to the New York Fed. The increase was driven by home and auto loans.