Fund Rankings Update, 1/4/2019

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 went up for the second week amidst high market volatility. Dow Jones Industrial Average has seen more than 250 points daily swing in its price movement since the beginning of the year. Decline in future supplier order activity, unexpected strong employment data, and dovish comments from Fed Chairman also boosted the market one way or the other elevating the market volatility,   For the week, S&P 500 index closed at 2531 up 1.86%, Dow Jones Industrial Average gained 1.61% and technology laden NASDAQ composite index increased 2.34%

Weekly chart of S&P 500 index

S&P 500 index advanced for the second week after rebounding from its 200 week moving average at 2350. The index looks to be forming the first leg of "W" formation. If that's the case, it may reach the 2600-2650 for the middle peak and come back down to test the support again to complete the second leg of "W". In 2016, it took the index more than two months to get back to its previous high after the second leg. This time around, we think the index will take longer to recover as the intensity of the selling and volatility is a lot higher.