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 declined again for the third week as economic data showing continuous inflationary pressure despite Fed's interest rate hikes. Weekly jobless claims fell to the lowest level since April while the ccore (less food and energy) personal consumption expenditures (PCE) price index rose to 4.7% well above the expected 4.4%. For the week, S&P 500 index went down 2.91% to 3585, Dow Jones Industrial Average lost 2.92%, and the technology laden NASDAQ composite index decreased 2.69%.
S&P 500 index fell below its previous low of 3636 and closed the week below the 3600 support level as we have discussed last week. Looking down, the next support is the 50% Fibonacci retracement level at 3500 which is close to where we are now, followed by the 61.8% Fibonacci retracement level at 3200. To get a rebound or trend reversal, we need to see inflation receding and Fed slowing the pace of its interest rate hike, which may take a longer time than investors' expectation though.
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| Weekly chart of S&P 500 index |
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