Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at http://sites.google.com/site/ycprankings
Trading signal occurs in RSP model portfolio, Sell 050587 (LSV LGE CP VALUE EQ), Buy 42627 (SSGA REIT INDEX).
Trading signal occurs in iETF model portfolio, Sell EWG, Buy EWS.
Friday's US job report showed that the economy only created 115,000 jobs in April, well below Wall Street's expectation of 170,000. Investors feared that the slowdown in US economy will cause a repeat of stocks' performance last year, and started dumping stocks. SP 500 index closed this week at 1369, down 2.44%. Dow Jones Industrial Average lost 1.44%, and Nasdaq composite index dropped 3.68%.
Weekly chart of S&P500 index shows that the index has been in a consolidation mode trading between 1370 and 1410 for the past four weeks, and the Stochastic indicator shows that its momentum is deteriorating and heading downward. Will the index continue its consolidation to digest the lofty gain from this rally and wait for the 28 week moving average to catch up, or will the index fall to the short term support at 1340 - 1350 level in the coming weeks meeting the rising 28 week moving average and bounce from there? It will be interesting to see how this one play out.
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