Trading signal occurs in FEMKX timing system: Sell Cash, Buy FEMKX
Stocks advanced for fourth weeks with the backdrop of rising oil price due to declining US supply and announcement of additional money easing action from ECB. For the week S&P 500 index closed at 2022, up 1.1%, Dow Jones Industrial Average gained 1.21% while technology laden NASDAQ composite index increased 0.67%.
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| Weekly chart of S&P 500 index |
S&P 500 index closed above 2000 this week as we have discussed 2 weeks ago. The index has broken above it 28 week moving average in the weekly chart, and its STO momentum indicator has risen above 50. The strength and the speed of this rally is very similar to the rebound rally in last October. In that rebound rally the index failed to sustain the momentum after reach the high of 2116 and yielded to the selling pressure. This time around, we will see how the index reacts around the coming resistance at 2050.
With the strength of this rally, our FEMKX timing system which uses STO momentum indicator as buy and sell signal has issued a buy signal as its STO rose above the buying threshold of 50. FEMKX timing system has been very reliable in reflecting the direction of the the general stock markets so we are optimistic about this rally.
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