Fund Rankings Update, 8/31/2018

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.

Encouraged by the revised trade agreement between Mexico and U.S., as well as the optimism that a trade agreement between U.S. and Canada will soon to follow, stocks moved decisively higher with technology sector leading the ways.  For the week,  S&P 500 index closed at 2901 up 0.93%, Dow Jones Industrial Average gained 0.68% and technology laden NASDAQ composite index increased 2.06%.

Weekly chart of S&P 500 index

With high momentum and 2850 resistance level broken, S&P 500 moved higher to another record high as we have anticipated in last week's blog. The index is now 5% above its 28 week moving average. Caution needs to be taken when the index is too far above its support line. Looking back in January, a correction occurred when the index is more than 9% above its trend line. We are not at that extreme level yet, and we will pay close attention to the price movement when the index is more than 6% higher above its 28 week moving average.