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 iETF model portfolio: Sell EWZ, Buy Cash
Stocks experienced the worst weekly loss since January after release of 8.6 % consumer price index reading for May, which is higher than the 8.2% increase expected. The stubborn high inflation data will likely push Fed to take more aggressive action in hiking interest rate in its policy meeting next week as investors feared. For the week, S&P 500 index went down 5.05% to 3900, Dow Jones Industrial Average lost 4.58%, and the technology laden NASDAQ composite index decreased 5.6%.
The extreme trading pessimism can be seen in the weekly chart of S&P 500 through the long red body candle this week. If the index falls further below the previous low of 3810, we will see more downside toward the 3500 level. If the index can hold it at this level, we may see a rebound with a double bottom pattern forming and a positive divergence between momentum indicator STO and its price pattern.
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| Weekly chart of S&P 500 index |
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