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 opened the first week of December higher, with the Tech sector leading the way amid investors' hope for a rate cut in the Fed's December 9 meeting. Economic data released during the week showed that growth is softening. On Monday, the Institute for Supply Management (ISM) reported a Purchase Managers' Index (PMI) of 48.2 for November, down from 48.7 in October (PMI readings below 50% indicate contraction, while readings above 50% signal expansion). On Wednesday, Non-Farm employment data showed that private sector payrolls decreased by 32,000 in November, well below the estimated increase of 5000. However, positive news came from tame inflation data. The Bureau of Economic Analysis reported on Friday that the personal consumption expenditures (PCE) index ( the Fed’s preferred inflation measure) rose 0.3% month over month in September, in line with August’s reading. Core PCE, which excludes volatile food and energy prices, rose 0.2%, also in line with the prior month. With the backdrop of soft economic growth and tame inflation, all eyes are on the Fed's rate policy action in its meeting next week. For the week, the S&P 500 marched 0.31% higher to close at 6870, the Dow Jones Industrial Average increased 0.5%, and the Nasdaq Composite index advanced 0.91%.
The S&P 500 index concluded the week slightly higher at 6870, as market participants await the crucial Federal Reserve policy meeting this coming week. The weekly chart below shows the index facing immediate resistance at its previous high of 6920, and the key support at its previous low of 6521. The index's movement next week is critical in determining its medium-term trajectory. A Fed rate cut, if announced as expected by analysts, is expected to provide the necessary catalyst for the index to decisively break through the 6920 resistance and resume its recent uptrend. However, failure to receive the expected rate policy could lead to a significant market rejection at the resistance level and trigger a trend reversal. We will monitor these developments closely.
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| The weekly chart of the S&P 500 index |