Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, and sETF have been posted on "Rankings", and "Trading Logs" pages, as well as in http://ycprankings.awardspace.us/RankingTables.htm.
Stocks closed the week broadly lower as positive economic news pushed the 10-year U.S. Treasury yield to its highest level since last October. Retail sales with a significant increase in discretionary spending jumped 0.7% in July, two times higher than the expectation, and Industrial production in July also went up 1%, tripling the consensus estimate. Investors worry that the overheating growth of the economy will force FED to hike the interest rate further to slow it down and keep inflation in check. For the week, S&P 500 index went down 2.11% to 4369 Dow Jones Industrial Average lost 2.21%, and the technology-laden NASDAQ composite index decreased 2.59%.
S&P 500 index continued its pullback for the third week. The last time S&P 500 index went continuing down for 3 weeks was in February. At that time, the index bounced off the 28-week EMA the next week followed by an impulsive selling and a recovery to continue the bull run. The momentum indicator STO[15,1] went down from 50 to 20 after the impulsive selling and bounced right back paving the way for the 5-month-long uptrend from March to July. The index is now 2% above its trend line support and the STO[15,1] is similarly at 53, we will see if the history will repeat itself this time.
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| The weekly chart of the S&P 500 index |
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