Fund Rankings Update, 12/18/2015

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted in "Rankings", "Trading Logs" pages, and  http://ycprankings.awardspace.us/RankingTables.htm.

Stocks started the week strong in anticipation of   Federal Reserve's raising interest rate for the first time in 10 years. On Wednesday, in its announcement after FOMC meeting, the FED raised the Fed fund rate by 0.25% and made it clear that the subsequent rate hike will be gradual and data driven.  Traders and Investors were encouraged by FED's dovish stance and rallied immediately. Unfortunately, the rally fell apart on Thursday and Friday, and Dow Jones Industrial Average dropped more than 600 points in those two days. Plunging oil prices, which fell below $35 a barrel, and quadruple witching day were attributed to be the culprit of the sharp drop in stock prices.  For the week S&P 500 index closed at 2005, down 0.34%, Dow Jones Industrial Average lost 0.79% while NASDAQ composite index decreased 0.21%.

Weekly chart of S&P 500 index

A bearish reversal showed up in the weekly chart of S&P 500 index. After a long red candle a week before, the index tried to rallied back above its 28 week moving average.  However, the bearish sentiment still dominates the trading floor and overpowering the bull forcing the index to fall back down and end up below where it began. With the index staying below its trend line and heading downward with declining momentum, we expect the volatility will last for anther few weeks and no Santa rally this year.