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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:
Stocks finished lower on Friday, but the S&P 500 finished the week with a 1.03% gain.
This week data will be released on pending home sales, consumer spending, manufacturing, the jobs report and the FOMC meeting announcement.
The economy expanded at a slower pace in the fourth quarter, with GDP slowing to 1.9%, weighed by a wider trade deficit.
The Conference Board’s leading economic index rose .5% in December, “suggesting the economy will continue growing at a moderate pace, perhaps even accelerating slightly in the early months of this year”, according to the Conference Board. “December’s large gain was mainly driven by improving sentiment about the outlook and suggests the business cycle still showed strong momentum in the final months of 2016.”
The Atlanta Fed’s final GDPNow model forecast for fourth quarter growth was 2.9% following the release of economic indicators.
Sales of existing homes fell 2.8% in December to an annual pace of 5.49 million as the supply of available homes dropped 10.8% to 1.65 million – marking a 17-year low. Even with December’s decline, 2016 closed as the best year for sales in a decade. According to the National Association of Realtors, “Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market. However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December”.
New home sales dropped 10.4% in December to an annual rate of 536,000, marking a ten-month low.