Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, and sETF have been posted on "Rankings", and "Trading Logs" pages, as well as in http://ycprankings.awardspace.us/RankingTables.htm.
Stocks pulled back another week as geopolitical tension rose in the Middle East and signs of persistent inflation pressure weighed in on investors' sentiments. The consumer price index rose 0.36% in March and the overall index rose 3.5% on an annual basis while the core CPI (excluding food and energy) rose 0.4% in March and 3.8% year-over-year according to the data released on Wednesday by the Labor Department. Both CPI and core CPI are all higher than economists' expectations and essentially destroyed investors' hope for a rate cut in June. Investor sentiments suffered another blow Friday as talk about Iran's preparation for attacking Israel drove oil prices and US dollars significantly higher. For the week, the S&P 500 fell 1.56% to 5123, the Dow Jones Industrial Average plunged 2.37% and the Nasdaq composite index went down 0.46%.
The S&P 500 continued its decline for another week with the gap between the index and its 28-week exponential moving average narrowing from 9.5% to a more usual 5.4%. It is interesting to see whether the index stays in a sideway consolidation or goes for a sharp pullback toward its 28-week EMA. As discussed last week, this may create an opportunity for rebalancing the portfolio holdings.
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| The weekly chart of the S&P 500 index |
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