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.
Stocks continued to advance higher with the S&P 500 index and the NASDAQ reaching another all-time high. Positive investor sentiments were supported by the passage of the Trump administration's budget bill and the announcement of the trade deal with Vietnam. On the economic data front, the Labor Department reported that the U.S. economy added 147,000 jobs in June, and the unemployment rate ticked lower to 4.1%, both better than expected. The activity in the U.S. manufacturing sector contracted for another month, albeit at a slower rate, with the Institute for Supply Management's (ISM's) manufacturing purchasing managers’ index (PMI) coming in at 49.1%. For the week, the S&P 500 rose 1.72% to 6279, the Dow Jones gained 2.3%, and the Nasdaq Composite advanced 1.62%.
The S&P 500 continued its upward trajectory, pushing past the 6200 psychological resistance and closing the shortened trading week at a new record high of 6279 on Thursday. With the clear prevailing uptrend and sustained momentum, the index appears poised to extend its gains further. Given the recent breakout to new highs and the overall bullish sentiment, the index could see further incremental gains, potentially heading towards the 6500 Fibonacci target. However, traders should be mindful of potential short-term pullbacks, especially given the rapid ascent.
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| The weekly chart of the S&P 500 index |