US Consumer Sentiment Running High and Higher

US Consumer Sentiment Running High and Higher

US Consumer Sentiment Running High and Higher

$DIA, $SPY, $QQQ, $VXX

US consumer sentiment held steady on a gain in American household expectations, according to a University of Michigan report Friday.

The MSI held steady at a solid 98.8 for preliminary May, the University of Michigan’s Consumer Survey Center reported.

The comparable April reading was also revised from 97.8 to 98.8, inline with May’s result.

Even with the April monthly setback, confidence remains elevated. The index also remains higher than it was five years ago, when it was reported in May 2013 to be 84.5. This index has been edging off unusually strong readings earlier in the year, gains triggered by this year’s tax cut.

The expectations component, now at 89.5, offset a slight dip in the assessment of current conditions, at 113.3.

Eight out of every 10 consumers surveyed by the University of Michigan expect the Fed to raise interest rates in the year ahead, according to the data.

“The data will thus provide some additional points for both sides in the debate about the timing and number of future interest rate hikes.”

US onsumers “have a remarkable track record” for identifying whether the actual unemployment rate will increase or decrease in the coming years.

The May result found that “fewer consumers anticipated further declines in the unemployment rate.”

The survey measures 600 households’ attitudes on future economic prospects, in areas such as personal finances, inflation, unemployment, government policies and interest rates.

Consumer sentiment is directly related to the strength of consumer spending. Consumer confidence and consumer sentiment are two ways of talking about consumer attitudes.

Among economic reports, consumer sentiment refers to the Michigan survey while consumer confidence refers to The Conference Board’s survey.

Friday, the major US stock market indexes came in at: DJIA +91.64 at 24831.17, NAS Comp -2.09 at 7402.89, S&P 500 +4.65 at 2727.72

Volume: Trade on the NYSE came in at 716-M/shares exchanged

  • NAS Comp +7.2% YTD
  • Russell 2000 +4.6% YTD
  • S&P 500 +2.0% YTD
  • DJIA +0.5% YTD

HeffX-LTN’s Market Indexes Technical Analysis for the week ended 11 May 2018

Date Symbol Price Technical Analysis Support Resistance
11 May 2018 QQQ 168.78 Neutral (0.19) 167.97 170.72
11 May 2018 DIA 248.34 Neutral (0.14) 248.33 254.07
11 May 2018 SPY 272.72 Bullish (0.50) 270.62 274.41

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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