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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 closed slightly lower on Friday to wrap up a choppy week. Still, the S&P 500 closed with a .81% weekly gain.
This week data will be released on existing home sales, durable goods orders, new home sales and the Fed’s FOMC meeting minutes.
After edging up in September, the Conference Board’s leading economic index picked up .1% in October: “The U.S. LEI increased in October for a second consecutive month. Although its six-month growth rate has moderated, the index still suggests that the economy will continue expanding into early 2017”.
Home builder confidence held steady in November, with a measure of buyer traffic increasing while a gauge of current sales was unchanged. According to the NAHB, “with most of our members responding before the November elections, confidence levels remained unchanged as they awaited the results. Still, builder sentiment has held well above 60 for the past three months, indicating that the single-family housing sector continues to show slow, gradual growth. Ongoing job creation, rising incomes and attractive mortgage rates are supporting demand in the single-family housing sector. This will help keep housing on a steady, upward glide path in the months ahead”.
The Atlanta Fed’s GDPNow model forecast for fourth quarter growth rose to 3.6% following housing starts data.
Consumer prices climbed .4% in October, largely on higher gas prices, and marking the fastest pace in six months. Excluding food and energy, prices rose .1%.
After dropping 9% in September, construction on new homes surged 25.5% in October to an annual rate of 1.32 million, reaching the highest level in 9 years, driven by a jump in both single-family and multi-family housing starts.