Optimism about new round of economic stimulus from the Fed and the encouraging results of vaccine trial from Moderna Therapeutics pushed stocks higher. Growth stocks outperformed value stocks, and small cap and mid cap stocks outperformed large cap stocks. For the week, S&P 500 index went up 3.2% to 2955, Dow Jones Industrial Average gained 3.29% , and the technology laden NASDAQ composite index increase 3.44%.
After failing to defeat the 28 EMA for the past three weeks, S&P 500 index finally closed the week at 2955 above its resistance of 2934. As the index breaks above its resistance, we will change our bearish bias position into a cautious bullish position if the index can stay above the resistance for another week for confirmation. Looking back at the recovery in early 2019, S&P 500 index close above the resistance at the end of January and consolidate above the resistance the following week. The index then marched upward for 12 weeks before pulling back to test its the trend resistance. Once the uptrend is established, look for pull back to support level for buying opportunities. Again keep your trading size mall to reduce risk in this volatile market environments.
After failing to defeat the 28 EMA for the past three weeks, S&P 500 index finally closed the week at 2955 above its resistance of 2934. As the index breaks above its resistance, we will change our bearish bias position into a cautious bullish position if the index can stay above the resistance for another week for confirmation. Looking back at the recovery in early 2019, S&P 500 index close above the resistance at the end of January and consolidate above the resistance the following week. The index then marched upward for 12 weeks before pulling back to test its the trend resistance. Once the uptrend is established, look for pull back to support level for buying opportunities. Again keep your trading size mall to reduce risk in this volatile market environments.
SSPP model portfolio changed its position from cash to growth company fund, FDGRX this week after FEMKX timing system turned bullish last week, Four of our eight model portfolios have moved to more aggressive positions as overall markets recovers from the sharp sell-off in February and March.
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| Weekly chart of S&P 500 index |
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