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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)-Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks finished lower on Friday, snapping a three-week winning streak. The S&P 500 closed the week with a .7% loss.
This week data will be released on small business optimism, retail sales, the Fed’s meeting minutes and the Job Openings and Labor Turnover Survey.
The economy created 156,000 jobs in September while the unemployment rate notched up to 5% on higher labor force participation, with 444,000 people entering the job market. The economy has added an average 178,000 jobs each month so far this year – down from 228,000 last year.
The trade deficit climbed 3% to $40.7 billion in August, as imports rose 1.2% to $228.6 billion – the highest level in nearly a year. At the same time exports rose to $187.5 billion, however, exports of capital goods slipped to a near five-year low.
The Atlanta Fed’s GDPNow model forecast for third quarter growth inched down to 2.1% following the wholesale trade report.
The manufacturing sector saw some improvement in September as new orders increased, with the ISM manufacturing index rising to 51.5% after falling into negative territory below 50 in August.
Speaking on Friday in Washington, Fed Vice Chair Stanley Fisher said that the Fed is waiting for business confidence to be “turned on” and that currently “people aren’t excited about growth prospects”. Fisher did not elaborate on the decision to hold interest rates at the last FOMC meeting.