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 suffered the worst weekly loss since March as US election is only 4 days away. Resurgent of the corona virus pandemic, uncertainty about the election outcome and the pessimism about the deal for a 3rd stimulus package even after the election. Defensive sectors like utilities held up better in this broad based decline while information technology sectors suffered the most. For the week, S&P 500 index went down 5.64% to 3269, Dow Jones Industrial Average lost 6.47% , while the technology laden NASDAQ composite index decreased 5.51%.
S&P 500 index plunged to 3200 and bounced back up above the 28 week exponential moving average at 3253. The 7% deviation of the index above its 28 week EMA in the weekly chart last week has been reduced to 0.4% this week. Due the the large sell-off, we may see a small rebound next week. It is critical for the index to stay above the 28 week EMA to keep the uptrend intact. Last week, we mentioned that the best scenario is for the index to move side way and wait for the 28 week EMA to catch up. Instead, we got the worst scenario: The index plunged back to 28 week EMA. In the next few weeks, we would like to see the index consolidate above the 28 week EMA similar to what it did in June-July period before taking off. On the downside, the next support level is 3000, if the current strong 3200 support level can not be successfully tested.
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| Weekly chart of S&P 500 index |
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