Trading signal occurs in iETF model portfolio: Sell EWP, Buy INP
Just as we thought the financial crisis is behind us, a major bank in Portuguese failed to pay interest for some of its debt. Investors' worries about the health of European financial system pulled down the market for the week and gave the current rally an opportunity to digest its gain. S&P 500 index closed at 1967, down 0.9%, Dow Jones Industrial Average lost 0.73%, and Nasdaq composite decrease 1.57% for the week.
Profit taking to reduce exposure of risk before the 2000 physiological level can be seen in the weekly chart of S&P 500 index. The index is also trading at the top of its trending channel with high momentum. We may see another few weeks of consolidation, but at this stage, the pull back is considered a healthy pause to bring the index back to the middle of the trading channel.
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| Weekly Chart of S&P 500 Index |
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