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 mostly lower as concern about the effect of high-interest rates, high oil prices, and the potential government weighed on investor sentiment. However, the core personal consumption expenditures (PCE) index which was released Friday showed an increase of 0.1% in August over July, lower than the 0.2% expected. Year over year, PCE increased 3.9%, the first time in more than 2 years that it dropped below 4%. The reading indicated the moderation of inflation and the effectiveness of FED's high-interest policy. For the week, the S&P 500 index went down 0.74% to 4288, the Dow Jones Industrial Average lost 1.34%, while the technology-laden NASDAQ composite index increased by 0.06%.
The S&P 500 index continued to fall and closed below its 28-week exponential moving average as we discussed in the blog last week. The index has fallen continuously for 4 weeks losing 5.2% and making September its worst month of the year so far. September has been a weak month from a seasonality point of view: 7 out of the last 10 years stock performance has been negative for September. We are looking forward to a better performance in October as the momentum indicator of the index has rebounded a bit and trying to climb out of the oversold region. Hopefully, the rebound can continue and the index can soon break above its 28-week EMA which has turned into a resistance now.
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| The weekly chart of the S&P 500 index |
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