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.
Trading signal occurs in ETF model portfolio: Sell IGV, Buy IYT.
Positive news about availability of COVID-19 vaccine was offset by worries about the effectiveness of the Fed's easy money policy to drive the economy recovery. For the week, S&P 500 index went down 0.64% to 3319, Dow Jones Industrial Average lost 0.03% , and the technology laden NASDAQ composite index decreased 0.56%.
S&P 500 index closed the week 0.64% lower and reaching the weekly low of 3292, which is the first support level we mentioned last week. The next level down will be a stronger support at 3200 level which corresponds to the 61.8% Fibonacci retracement level and the 28 week EMA trendline support. We think the index will rebound from 3200 level when it meets the 28 week EMA. As observed from the weekly chart below, up-trend corrections usually bounced off the trendline with STO indicator around 50 (red circles) to resume their advancement. The up trend is still intact as long as the index stays above its trendline. We will monitor closely how the index react around these support levels to provide clear market direction.
A trading signal was issued in the ETF model portfolio due to the recent slump in tech shares. The momentum rank of software sector fund, IGV, fell below 7 and is replaced with the current number one fund, IYT, in the ETF ranking table.
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| Weekly chart of S&P 500 index |
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