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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:
Following the jobs report, the S&P 500 finished Friday with a modest gain. The index posted a loss of .97% for the week.
This week data will be released on the service sector, the trade deficit and the Job Openings and Labor Turnover Survey.
The economy added 178,000 jobs in November, and the jobless rate fell to a nine-year low of 4.6%. The drop in the unemployment rate came as the labor force declined by 226,000.
The economy grew at a faster pace than previously projected in the third quarter, with GDP being revised up to 3.2% from 2.9% on stronger consumer spending. Household purchases rose 2.8%, up from a previous estimate of 2.1% as consumers had more spending power with wages up $110.2 billion compared to the second quarter.
The economy continued to expand from October through November, according to the Fed’s latest Beige Book, with increased activity in retail sales and real estate. “A tightening in labor market conditions was reported by seven districts, with modest employment growth on balance. Districts noted slight upward pressure on overall prices”, according to the report.
The Atlanta Fed’s GDPNow model is forecasting fourth quarter growth of 2.9% following the release of construction spending data.
Pending home sales edged up slightly in October, with the National Association of Realtors index rising .1%. According to the NAR, “Despite limited listings and steadfast price growth that’s now carried into the fall, buyer demand has remained strong because of the consistently reliable job creation in a majority of metro areas”.
The manufacturing sector grew in November at the fastest pace in five months, as the ISM manufacturing index rose to 53.2, with a gauge of production reaching an almost two-year high.
Following the biggest gain in five months in September, consumer spending moderated to a .3% gain in October while wages increased .5%.