The Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, and sETF have been posted on the "Rankings", and "Trading Logs" pages.
Trading signal occurs in SSPP model portfolio: Sell FCNTX, Buy FIEUX
Trading signal occurs in SELECT model portfolio: Sell FBMPX, Buy FSTCX
Stocks closed sharply lower as President Trump announced reciprocal tariffs against the world on Wednesday. The harsher-than-expected move triggered fears of retaliation from other countries, as well as higher inflation and economic recession. While Wall Street is now looking for the Fed's help to counter the impact of tariffs by lowering the interest rates, the Fed Chair, Jerome Powell, still wants to wait for more clarity before adjusting the money policy. For the week, the S&P 500 gave up 9.08%, closing at 5074, the Dow Jones Industrial Average shed 7.86%, and the Nasdaq Composite plunged 10.02%.
The S&P 500 index plunged Thursday and Friday after President Trump's reciprocal tariff announcement on Wednesday, after the market closed. In the weekly chart below, the index closed below its 28-week exponential moving average the week of March 3 and rebounded before reaching the low of 5504. The index tested the EMA resistance of 5787 during the rebound last week (week of March 24) and experienced severe rejection. The index then fell sharply lower after breaking the the previous low of 5504. As investors quite oftern overreact to the panic selling, the index may continue to fall to the previous high support at 4600 if it can not hold the current 5000 pyshological support. From past experience, it is better to wait before taking trading action at this juncture: Wait for rebound and sell when the index receives rejection at EMA resistance, or wait for "W" shape bottom and breaking above EMA resistance to buy into the market.
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| The weekly chart of the S&P 500 index |