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 gave back portion of its large gain from previous week as investors worried about recession looming on the horizon. Economic data showed consumer purchase fell 0.4% in May and the Atlanta Fed’s GDPNow model, if confirmed, indicates that we are already in recession with two consecutive negative quarterly GDP growth. For the week, S&P 500 index went down 2.21% to 3825, Dow Jones Industrial Average lost 1.28%, and the technology laden NASDAQ composite index decreased 4.13%.
The silver lining of the decline in S&P 500 index this week is that it still closed above the 3800 resistance. If the index can hold at this level, it may signal the start of bottoming process. Since the index has come down a warping 21% from its high in January 2022, we think a "U" shape or "W" shape bottom is more likely than a "V" bottom formation. A bullish divergence in momentum indicator and a bottoming formation are the signs of reversal we are looking for.
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| Weekly chart of S&P 500 index |
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