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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:
Stocks finished with slight gains amid thin trading on Friday, and the S&P 500 posted a .3% gain for the week.
This week data will be released on pending home sales, consumer confidence and home prices.
The economy grew faster than previously estimated in the third quarter, expanding 3.5%, marking the fastest growth in two years. The gain was driven by stronger consumer spending, up 3%, exports, up 10%, and business investment, up 1.4%.
After increasing in September and October, the Conference Board’s leading economic index was unchanged in November. According to the Conference Board, “the underlying trends in the LEI suggest that the economy will continue expanding into the first half of 2017, but it’s unlikely to considerably accelerate. Although the industrial and construction indicators held the U.S. LEI back in November, the weakness was offset by improvements in the interest rate spread, initial unemployment insurance claims, and stock prices”.
The Atlanta Fed’s GDPNow model forecast for fourth quarter growth slipped to 2.5% following the release of data on manufacturing and existing home sales.
Sales of existing homes increased in November for the third consecutive month, rising .7% to an annual rate of 5.61 million. According to the National Association of Realtors, “The healthiest job market since the Great Recession and the anticipation of some buyers to close on a home before mortgage rates accurately rose from their historically low level have combined to drive sales higher in recent months”. The inventory of available homes shrank 8% to 1.85 million, equaling a 4 months supply at the current sales pace.
Consumer spending slowed in November, rising .2% while incomes were unchanged. At the same time the savings rate dipped to 5.5%.