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 sETF model portfolio: Sell IBB, Buy IEO.
Stocks declined sharply after August consumer price index ticked higher with core CPI jumped to 6.3% instead of the expected 6.1%. Investors were spooked by the higher inflation data and feared of the aggressive FED policy that will lead to a global recession. For the week, S&P 500 index went down 4.77% to 3873, Dow Jones Industrial Average lost 4.13%, and the technology laden NASDAQ composite index decreased 5.48%.
As observed from weekly chart below, S&P 500 index briefly reached the 28 week EMA and retreated sharply to close below the low of last week with a big red candle. Its momentum indicator also declined sharply from above 50 last week to close the week at 34, well below the mid point. As its momentum is deteriorating, we expect the index to stay below the trendline for another few weeks. On the down side, there is a support at 3600 while on the upside, the trendline resistance at 4100.
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| Weekly chart of S&P 500 index |
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