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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)-Negative
Chaikin Money Flow (CMF)-Negative
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks closed slightly higher on Friday after Fed Chair Janet Yellen said that there may be benefits to running a “high pressure” economy with a tight labor market. The S&P 500 finished the week down 1%.
This week data will be released on industrial production, housing starts, existing home sales, the Fed’s Beige Book and the Conference Board’s leading economic indicators.
The release of the September FOMC meeting minutes showed that officials believed a rate hike would be needed “relatively soon”, stating that “Several members judged that it would be appropriate to increase the target range for the federal funds rate relatively soon if economic developments unfolded about as the committee expected. It was noted that a reasonable argument could be made either for an increase at this meeting or for waiting for some additional information on the labor market and inflation”.
Small business optimism slipped in September with the NFIB confidence index falling .3 points as “small business owners are deeply uncertain about the future, and that is affecting their decisions”. While a measure of expected business conditions increased, plans to increase inventories dropped.The NFIB report went on to say that “It is quite clear that the top issues for small-business owners will not be addressed this year. The presidential election is so divisive that it offers little promise of a bipartisan effort to deal with any of these important issues”.
Among the index’s ten components, five posted declines.
The Atlanta Fed’s GDPNow model forecast for third quarter growth fell to 1.9% following retail sales data.
Job openings fell to 5.44 million in August after reaching a record high of 5.83 million the month before. The number of hires for the month was little changed at 5.2 million.