Monday, May 2, 2016

ISM Survey … Construction Spending … Charts Discouraging … Margin Debt Suggests Problems … Stock Market Analysis

“U.S. manufacturers barely grew in April and there’s little sign of a broad pickup in business anytime soon, a survey of executives found. The Institute for Supply Management said its manufacturing index fell to 50.8% last month from 51.8% in March.” Story at…
“The U.S. Census Bureau reported Monday morning that construction spending in March rose by 0.3% to an estimated seasonally adjusted annual rate of $1.137.5 trillion from the downwardly revised estimate of $1.133.6 trillion in February.” Story at…
The reported number is 8% higher than March 2015

“When I look at the market in the chart below, I see three things:
A. The market has continued its rise as of late
B. It is doing so on overbought and negative-trending momentum
C. It has done so on weakening volume. seems to me that momentum is shifting negative all while volume is starting to pick up some steam.” – Adam D. Koos, CFP