Greece avoided the exit from euro zone by largely yielding to creditors' deman. The agreement removed the uncertainty in the market and rallied the global stock market at the beginning of the week. Stocks continued going higher throughout the week helped by the strong earning performance from technology sectors. For the week S&P 500 index closed at 2126, up 2.41%, Dow Jones Industrial Average gained 1.84% and Nasdaq composite index ended up higher by increasing 4.25%.
After making a small "Hammer" candle stick pattern last week, S&P 500 index rebounded strongly from its 28 week moving average. The index has been in this flat consolidation mode trading between the channdel from 2040 to 2120 for the past five months. The strength of this uptrend can be seen from the weekly chart that the index has stayed above its trendline and bounced back up every time it touches or dipped below the trend line. If the index breaks above 2140, the flat consolidation phase will be over and the market will tend higher.
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| Weekly chart of S&P 500 index |
The Fidelity Europe fund, FIEUX, in the SSPP ranking table can not keep its momentum going and the AMI rank has fallen below top 7 ranks. A trading signal is triggered to sell FIEUX and replace it with the current top one rank fund, Fidelity Contra fund (FCNTX). We have held FIEUX for only 46 days with a loss of 0.1%.
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