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.
Positive vaccine effectiveness news from Pfizer and Moderna were offset by concern about the economic impact from local lockdown and restriction across the country due to rising confirmed Codv-19 cases and fatality. Rising weekly jobless claim from 711K to 742K and lower than expected retail sales in October also provide evidence of economic slowdown. For the week, S&P 500 index went down 0.77% to 3557, Dow Jones Industrial Average lost 0.73% , while the technology laden NASDAQ composite index increased 0.22%.
S&P 500 index consolidated around 3600 level for the second week. Our view remains cautious as the current momentum of S&P 500 index is less powerful than it had in the July-September period and the index is abnormally higher above its trendline. The short term support from the weekly chart is at 3500, and the next support level is at the trendline support of 3300. The best scenario is for the index to go side way with reduced volatility between 3500 to 3600 for a while before breaking out on the upside. We have only six weeks left to close the book for 2020. In 20218, S&P 500 index plunged lower before bouncing back during the final few weeks of the year, while last year, it robustly moved higher. It will be interesting to see how the index behaves this time around.
 |
| Weekly chart of S&P 500 index |
No comments:
Post a Comment