Slower industrial growth bearish for SP500
US housing and industrial sectors growth slowed more than expected in October. Will the SP500 continue declining?
US economic data were negative on balance lately. After a stronger than expected October jobs report and retail sales data updates from housing and industrial sectors were weaker than expected: industrial production growth slowed to 0.1% over month in October instead of steady growth at 0.2%, and housing starts rose slower than forecast while building permits continued falling in October albeit at a slightly lower rate than in previous month. And business investment was weak for the third month in a row: capital goods orders, (nondefense excluding aircrafts) were stagnant in October as durable goods (made to last at least three years) orders fell 4.4%, the biggest decline in 15 months. Weaker data are bearish for SP500.
On the daily timeframe the SP500 is below the 200-day moving average MA(200) which has leveled off, this is bearish.
Technical Analysis Summary
Position Sell
Sell stop Below 2631.06
Stop loss Above 2816.31
US housing and industrial sectors growth slowed more than expected in October. Will the SP500 continue declining?
US economic data were negative on balance lately. After a stronger than expected October jobs report and retail sales data updates from housing and industrial sectors were weaker than expected: industrial production growth slowed to 0.1% over month in October instead of steady growth at 0.2%, and housing starts rose slower than forecast while building permits continued falling in October albeit at a slightly lower rate than in previous month. And business investment was weak for the third month in a row: capital goods orders, (nondefense excluding aircrafts) were stagnant in October as durable goods (made to last at least three years) orders fell 4.4%, the biggest decline in 15 months. Weaker data are bearish for SP500.
On the daily timeframe the SP500 is below the 200-day moving average MA(200) which has leveled off, this is bearish.
- The Parabolic indicator gives a sell signal.
- The Donchian channel indicates downtrend: it is tilting lower.
- The MACD indicator gives a bearish signal: it is below the signal line and the gap is widening.
- The RSI indicator is falling but has not breached into oversold the zone.
Technical Analysis Summary
Position Sell
Sell stop Below 2631.06
Stop loss Above 2816.31
