Fund Rankings Update, 8/2/2019

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted in "Rankings", "Trading Logs" pages, as well as in  http://ycprankings.awardspace.us/RankingTables.htm.

Stocks went sharply lower and recorded the worst weekly loss since the beginning of the year. Investors were spooked mainly by concern about Fed's interest rate policy and US-China trade negotiation.  President Trump  slapped 10% tariffs on another 300 billion Chinese goods highlighting the tension in US-China trade talk.  On Wednesday, Fed lower interest rate by 0.25% as expected but closed the door for further easing for the remainder of the year.  For the week, S&P 500 index closed at 2932 down 3.1%, Dow Jones Industrial Average lost 2.6% and technology laden NASDAQ composite index decreased 3.92%.

Weekly chart of S&P 500 index

S&P 500 index plunged lower after Fed's announcement of 0.25% interest rate cut on Wednesday, which validated our earlier view in the blog post on 7/12. As observed in the weekly chart, the index is forming a top and the sizes of the candles have increased in the last 4 weeks signaling higher volatility in the market.  The index has fallen below the 2940-2950 support level and we expect to see more downward movement in the coming weeks. The next meaningful support level is around 2800. We will see how the index perform from here on and see if it will get to that level.