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 iETF model portfolio: Sell EWP, Buy EWY
Stocks continued their upward march this week, spearheaded by strong performances in the large-cap and technology sectors. Investor sentiment was buoyed by several key events: the Federal Reserve's expected 0.25% cut to the Fed fund rate on Wednesday, and a modest trade agreement between the US and China reached at the APEC summit, providing temporary relief. Additionally, five of the "Magnificent Seven" companies reported positive quarterly earnings, with their continuous capital expenditure on AI alleviating investor concerns about a potential AI bubble. For the week, the S&P 500 advanced 0.71% to close at 6,840, the Dow Jones Industrial Average gained 0.75%, and the Nasdaq Composite index surged 2.24%.
The S&P 500 successfully tagged the 6900 technical target during the week, although it closed marginally below this key resistance level. The index is now navigating an area of extreme overbought conditions, facing strong resistance in the 6900-7000 range. Given this technical setup, the market is highly likely to enter a period of consolidation or sideways trading over the next few weeks before buyers can generate sufficient momentum to resume the broader uptrend.
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| The weekly chart of the S&P 500 index |