Trading signal occurs in SSPP model portfolio: Sell FIUIX, Buy FOCPX
Stocks closed flat this week as all major indices reached their all time highs mid-week. For the week S&P 500 index closed at 2184, up 0.05%, Dow Jones Industrial Average gained 0.18% and again technology laden NASDAQ composite index increased 0.23%.
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| Weekly chart of S&P 500 index |
After rising four weeks since end of June, S&P 500 index has slow down its advance in the past 4 weeks since mid July. During the past 4 weeks, we have seen sector rotation in the stock markets as technology and growth funds rose to the top of our momentum ranking tables, while defensive funds such as utility and income funds went down the ladders. The switching away from defensive funds indicates that this rally may have some staying power. However, as the index is at the extreme overbought condition, the rally may experience a consolidation phase before running higher.
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