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.
Market volatility reached its 10 month high as stocks rebounded sharply this past week. On Wednesday, Dow Jones Industry Average went down 145 points before reversing itself in the final trading hour and ended up more than 1000 points above its opening price. Strong Holiday sales seemed to boost investor sentiment this week while government shutdown has not been a negative factor yet. For the week, S&P 500 index closed at 2485 up 2.86%, Dow Jones Industrial Average gained 2.75% and technology laden NASDAQ composite index increased 3.97%.
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| Weekly chart of S&P 500 index |
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| Weekly chart of 5-year S&P 500 index |
S&P 500 index rebounded from its 200 week moving average at 2350 this week. From the 5-year weekly chart above, the index rebounded twice from its 200 week moving average at 1810 in early 2016 after declining 15% from its high of 2134. The index then went on a multi-year bull market reaching the high of 2940 and setting up the sharp plunge that we are experiencing right now. Will the history repeat itself? We will have to see how the index behaves around this critical level. However, as the 28 week moving average of the S&P 500 index is trending downward and its momentum is extremely low, we don't expect the index will reverse itself anytime soon.
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