Stocks largely influenced by Greek saga, opened the week sharply lower again after a "No" vote in Greece referendum rejecting the austerity measure. Major indices plunged further due to slide in Chinese stock market and a system glitch that halted the trading in New York Stock Exchange before rebounded sharply Friday. For the week S&P 500 index closed at 2076, down 0.01%, Dow Jones Industrial Average gained 0.17% and Nasdaq composite index ended up lower by decreasing 0.23%
The S&P 500 index has made a small "Hammer" candle stick pattern in the weekly chart while closed the week a bit below its 28 week moving average. The momentum indicator is falling and has dipped below the neutral mark of 50. Whether S&P 500 index can rebound from here next week is critical in determining the continuation of the up trend.
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| Weekly chart of S&P 500 index |
Weekly chart below showed the collapse of FXI in the past month. The index fund made a new high at $52.58 after the sharp rise from $43 in late March but failed to keep the gain at $48 and plunged below its 28 week moving average this week. The large volatility caused it to drop out of the top 7 ranks in iETF AMI ranking table and a trading signal was issued for iETF model portfolio to sell FXI and buy into EWK. The FXI has been held for 193 days with a gain of 2.63%.
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| Weekly chart of FXI |
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