Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted at http://sites.google.com/site/ycprankings
Retail sales, manufacturing activities and employment rates all indicated that US economy is growing at a faster pace. S&P 500 index closed the week at 1560, up 0.61%, Dow Jones Industrial Average gained 0.81%, and Nasdaq composite increased 0.14% for the week.
S&P 500 index continues to march toward its pre-crash '2007 high of 1575. All the factors are favorable for the index to go higher. Fundamentally, the index is less expensive than 2007, with lower PE ratio and higher yield. Economy condition is also helping as it is picking up momentum and the Federal Reserve is continuing its easy money policy. Technically, S&P 500 index still possess high momentum, and the up-trend looks to be robust from weekly chart. The things that work against the index is the duration of this rally, which has been 4 months and the psychological resistance to traders/investors due to the previous-high. It will be interesting to see how the index behave once it reach 1575.
1 comment:
Interesting charts
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