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 RSP model portfolio: Sell 42635, Buy CONINC
After seven weeks of relentless selling, stocks finally rebounded strong encouraged by milder inflation data, softening but not recessionary economic news. While lowered outlook from Walmart and Target prompted the sell-off two weeks ago, the upbeat forecast from Macy and Nordstrom this past week more than made up the loss. For the week, S&P 500 index went up 6.58% to 4158, Dow Jones Industrial Average gained 6.24%, and the technology laden NASDAQ composite index increased 6.84%.
S&P 500 rebounded and closed firstly above its high of the past two weeks and secondly above the 4000-4100 level. The strong rebound indicate the selling in the past seven weeks was over done and the index is trying to consolidate at a comfortable price level. From the weekly chart, there are two resistance levels ahead of the index: the 4200 level which used to be a strong support and the 28 week moving average which stood at 4300 currently. Going forward, these two resistance levels may converged into an even stronger resistance. We shall see.
A trading signal occurs this week in RSP model portfolio to sell DIVRSFIED REAL ASSET fund and buy CONSERV INCOME FUND. The strong selling in the last seven weeks prompted the portfolio to move totally to cash position after one month hold in the conservative real estate fund.
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| Weekly chart of S&P 500 Index |
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