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 sharply lower as the FED announced to keep the interest rate higher and longer. All eyes were on the FED's interest rate decision in its policy meeting Wednesday. The FED did not raise the interest rate but forecasted a higher-than-expected rate estimate for 2024 and 2025. Worries about the impact of UAW strikes and a potential government shutdown if Congress can not pass the funding bills before the deadline also dampen investor sentiment. For the week, the S&P 500 index went down 2.93% to 4320, the Dow Jones Industrial Average lost 1.89%, and the technology-laden NASDAQ composite index decreased by 3.62%.
Two weeks ago, we discussed about the similarity of the S&P 500 index's price action in the past few weeks and the correction in February and March. This week, the index gets a sharp drop, a week later than in the Feb-March correction, and closed 2 points below its 28-week EMA. In the last correction, the index went below the 28-week EMA and came right back to resume the up-trend. As the momentum indicator of the index has fallen into the oversold region, we expect the index will fall below the trend line for a couple of weeks before it bounces back.
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| The weekly chart of the S&P 500 index |
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