Trading signal occurs in iETF model portfolio: Sell EWH, Buy EWN
Trading signal occurs in FEMKX time model: Sell FEMKX, Buy Cash
Concern about trade war between US and China pushed the market downwards. For the week, S&P 500 index closed at 2859 down 0.76%, Dow Jones Industrial Average lost 0.64% and technology laden NASDAQ composite index decreased 1.27% for the week.
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| Weekly chart of S&P 500 index |
S&P 500 index opened the week with a gap down and test the 28 week exponential moving average (EMA) at 2800. By mid-week it has recovered most of the loss before but gave most of them back in Friday afternoon. The index is now 2.1% above its 28 week EMA not as over extended as a couple weeks ago. As observed in its weekly chart, the index has successfully tested the support level in its first attempt. The momentum indicator, STO [15,1] has declined to 80 and likely will fall out of oversold territory next week. We will see in the next few week if the index will stay above its 28 week EMA.
The sharp drop in the last two weeks also changed the momentum leadership in our ranking tables. Three trading signals have been issued this week moving holdings in model portfolios to funds that are less affected by tariffs and trade war with China.
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