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 RSP model portfolio: Sell FDGRX, Buy 05087
Stocks ended a bruising week sharply lower, as the artificial-intelligence trade that has carried the market for three years suffered its worst rout since the tariff crash of April 2025, with nearly all of the week's losses coming in a single session. The week began quietly enough, with Advanced Micro Devices reporting after Tuesday's close — record third-quarter revenue of $13.38 billion, up 45% from a year earlier, adjusted earnings of $2.09 a share against $1.95 expected, and fourth-quarter guidance of about $17 billion that topped estimates — and Wednesday brought the market's best day in three months as the Democrats' sweeping midterm victory cleared the election uncertainty, but Thursday turned the tape upside down: investors repriced the AI buildout itself, after 40 of 41 ballot measures restricting data-center construction passed and Senator Bernie Sanders called for a national moratorium on new data centers, and the Philadelphia Semiconductor Index plunged 12.3%, with AMD falling 17.3% despite its earnings beat, Nvidia down 9.3%, Micron 17.3% and SanDisk 21.8%, while Qualcomm slid 9% on a weak smartphone-chip outlook. The S&P 500 fell 4.4% Thursday to 7,354, its worst day since April 2025, the Dow lost 3.4%, and the Nasdaq Composite plunged 5.5% to 24,315, entering correction territory more than 10% below its October 6 record close. Friday brought only a partial bounce — chip stocks recovered about a third of Thursday's losses, with AMD rebounding 11% — helped by a stronger-than-expected October jobs report, with employers adding 165,000 jobs against about 65,000 expected and unemployment ticking down to 4.1%, which lifted bets on a December Fed rate hike to about 78% and pushed the 10-year Treasury yield to 4.86%, while Brent crude fell more than 16% on the week to about $98.66 on hopes for a diplomatic resolution in the Middle East and gold climbed to about $4,059 an ounce. For the week, the S&P 500 fell 2.7% to close at 7,377, the Dow Jones Industrial Average fell 0.9% to finish at 51,286, while the tech-heavy Nasdaq Composite slid, falling 3.4% to settle at 24,579.
From a technical perspective, the S&P 500's pullback broke new ground this week, with Friday's close of 7,377 settling well below the 7,500 structural floor and the 28-Week EMA at 7485. The index is now just hovering above its 200-day EMA near 7,350 after a fourth straight weekly decline, the index's worst week since June. Overhead, the broken 7,500 floor now becomes the first resistance, with the 7,600 zone and Wednesday's 7,689 close above it, and the 7,800 to 7,845 supply zone — the October 6 record close of 7,819 and the intraday record of 7,845 — still the wall the bulls must reclaim before our 7,850 target, and ultimately the 8,000 psychological level, come back into play. On the downside, failing to hold the 200-day EMA near 7,350 would open the way to 7,037, the 10% correction line from the record close. With the S&P 500 settling below the 28-week EMA of 7485, our intermediate-term trend-following indicator has turned negative and triggered a "Sell" signal.
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| The weekly chart of the S&P 500 index |
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