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 ILF Buy IJS
Stocks fell sharply with high volatility and high volume. Dow Jones Industrial Average endured daily plunge of 600 points on Wednesday and Friday. The heightened volatility was attributed to the quarterly earning reports as well as the "short squeeze" for stocks like, Gamestop and AMC entertainment. Economic news about Fed's keeping the interest rate intact out of uncertainty of the economic growth and the 4% US 4th quarter GDP growth which was inline with expectation were largely brushed away as attention was focused on the wild swing of those short squeezed stocks. For the week, S&P 500 index went down 3.31% to 3714, Dow Jones Industrial Average lost 3.27%, and the technology laden NASDAQ composite index decreased 3.49%.
With the increased volatility, S&P 500 index has fallen below its tight advancing trading channel. Looking back at the price pattern prior and after start of 2020, one can easily draw the conclusion that a sharp correction is waiting ahead if the volatility continues for another few weeks. A first support below the current price is at 3500 which is also close to the 28 week moving average and the next level down is at 3200 which is about 8% below the high of 3870 it has reached this week. We shall see how this play out in the next couple of weeks.
 |
| Weekly chart of S&P 500 index |
No comments:
Post a Comment