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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 finished higher on Friday as the market shrugged off the threat of a looming government shutdown, with the S&P 500 logging a new record high and ending the week up .9%.
This week data will be released on existing home sales, new home sales, the Conference Board’s leading economic indicators and GDP.
The economy continued to grow at a “modest to moderate” pace, according to the Fed’s latest Beige Book, as the outlook for 2018 “remains optimistic”.
Builder confidence remained strong at the start of the year, as the NAHB index slipped to 72 after reaching an 18-year high in December, with measures of current conditions, buyer traffic and sales expectations falling slightly. According to the NAHB, sales expectations signal “that housing demand should continue to grow in 2018. As the overall economy strengthens, owner-occupied household formation increases and the supply of existing home inventory tightens, we can expect the single-family housing market to make further gains this year”.
The Atlanta Fed’s GDPNow forecast for fourth quarter growth rose to 3.4% following the release of industrial production data.
Construction on new homes faded at the end of the year, as housing starts dropped 8.2% in December to an annual pace of 1.19 million. Permits for future construction were basically unchanged at a pace of 1.30 million.