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, IYE, Buy FXI
Trading signal occurs in sETF model portfolio: Sell, IEO, Buy IHE
Stocks reversed its downward course on the optimism that the FED will tame the inflation without driving the the economy into recession. On Wednesday, Institute for Supply Management (ISM) released its estimates of services activity in June showing a continuation of slowdown in economic growth, and on Friday, the Labor Department's payroll data showed US economy added 372K jobs in June better than the expectation of 270K. For the week, S&P 500 index went up 1.94% to 3899, Dow Jones Industrial Average gained 0.77%, and the technology laden NASDAQ composite index increased 4.56%.
S&P 500 consolidated around 3800-3900 level this week. The momentum indicator STO has formed a "W" bottom and a bullish divergent pattern: The index is making lower lows in May and June, while the STO is making higher lows. As the index look to be forming a bottom right now, the final confirmation will come when the index breaks above its 28 week EMA.
Three trading signals were issued this week in our model portfolios due to the recent decline in oil prices. However, no leadership sector has emerged, and most of our model portfolios are still in cash positions waiting for the right time to buy.
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| Weekly chart of S&P 500 index |
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