Continuation of weak investor sentiment and worries about global slowdown especially in Europe and China pushed the markets down for the week. The loss was somewhat reduced on Friday due to economy data showing strong job creation in September, and a drop in unemployment rate below 6%. For the week, S&P 500 index closed at 1967, down 0.75%. Dow Jones Industrial Average lost 0.6%, and Nasdaq composite index decreased 0.81%.
In the weekly chart below, we can see S&P 500 index touched the trend line and made a "hammer" candle stick pattern. Similar patters in the past have resulted in continuation of the up trend and provided a short term buying opportunity. A positive bias next week will give us confirmation of the past pattern, and may take us up to the end of the year.
Another trading signal was issued in ETF model portfolio this week. China index fund, FXI, is replaced with Biotech sector Fund, IBB, due to AMI rank change. FXI was held for 53 days with a loss of 6.7%.
 |
| Weekly chart of S&P 500 index |
No comments:
Post a Comment