Existing home sales show very rare decline in April, but evidence of a seller’s market remains. Real Time Economic Calendar provided by Investing.com. **NEW** As part of the ongoing process to offer new and up-to-date information regarding seasonal and technical investing, we are adding a section to the daily reports that details the stocks that are entering their period of seasonal strength, based on average historical start dates. Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends. Stocks Entering Period of Seasonal Strength Today: No stocks identified for today The Markets Stocks closed higher on Wednesday as investors reacted to the release of the latest FOMC minutes. The S&P 500 Index added a quarter of one percent, closing the gap that was charted following the abrupt selloff just one week ago. The gain puts the large-cap benchmark at a new closing high, once again inching above resistance at 2400. The 20 and 50-day moving averages continue to point higher, having little time to deteriorate following last week’s losses. The direction of these moving averages is typically indicative of the direction of the short and intermediate-term trends. Volume on the session was subdued as traders refrain from any major bets ahead of the Memorial Day long weekend. Positive tendencies for the broad market surrounding this American holiday extend into the week ahead with the S&P 500 Index gaining an average of 0.51% over the four day period following the event; positive results were recorded in 59% of periods since 1990. S&P 500 Index Return during the week before and the week of Memorial Day Memorial Day Week Before Return Week of Return 2016 2.28% 0.00% 2015 0.16% -0.88% 2014 1.21% 1.21% 2013 -1.07% -1.14% 2012 1.74% -3.02% 2011 -0.16% -2.32% 2010 0.16% -2.25% 2009 0.47% 3.62% 2008 -3.47% 1.78% 2007 -0.46% 1.36% 2006 1.04% 0.63% 2005 0.80% -0.23% 2004 2.48% 0.16% 2003 -1.17% 3.25% 2002 -2.06% -1.54% 2001 -1.09% -1.35% 2000 -2.06% 7.20% 1999 -2.14% 1.99% 1998 0.16% -1.77% 1997 2.08% 0.15% 1996 1.44% -1.38% 1995 0.86% 1.69% 1994 0.53% 0.61% 1993 0.98% -0.03% 1992 0.96% 0.32% 1991 1.37% 3.27% 1990 -0.02% 2.42% Average: 0.19% 0.51% Gain Frequency: 62.96% 59.26% On the economic front, another housing report is suggesting weakness for the month of April. The headline print indicated that existing home sales fell by 2.3% last month to a seasonally adjusted annual rate of 5.57 million, missing the consensus estimate calling for a rate of 5.65 million. Stripping out the seasonal adjustments, sales of existing homes actually fell by 1.3%, a significant divergence from the average increase of 11.7% for this fourth month of the year. This is the first time in the over 17 years of data that we have on file that sales have declined in April. Rare declines in the west and south accompanied by below average gains in the north-east and mid-west account for the weakness in the aggregate result. The year-to-date change in existing home sales is now almost 11% below average for this time of year, the largest underperformance versus the historical trend since November of 2015 amidst the manufacturing recession. And while houses sit unsold, inventory levels are rising, up by 8.2%, more than the average increase for April of 5.9%. The months of supply is higher by four-tenths to 4.2, which still implies a sellers market; a balanced market is typically characterized by six months of supply. Given that sellers are still in control, the median sales price of existing homes jumped again, higher by 3.5% in April, double the average gain for this spring month. Prices are higher by 4.9% year-to-date, well above the average gain of 1.1% through the end of April. While one month does not make a trend, the housing data in April warrants some caution as the first signs of demand destruction become apparent. Existing home sales typically peak for the year in June at which point we’ll be able to offer a final grade to the always important spring selling season. Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.93. Seasonal charts of companies reporting earnings today: S&P 500 Index TSE Composite