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 started the October with mixed results with large-cap and technology stocks outperforming the general markets. This week was heavy on job-related economic data release. On Tuesday, data showed the US opened 9.6 million jobs in August more than the forecasted 8.8 million, while ADP employment data released on Wednesday showed 89000 jobs were created in September, lower than expected. The heavily focused US employment data released Friday showed that the US economy added 336000 jobs in September a lot higher than the 170000 expected by the consensus. The strong job data triggered the investors' fear of another rate hike from the FED and plunged the stocks before the market opened on Friday. However, stocks recovered and climbed higher after opening as investors digested the details of the job reports, and found that the small increase in average hourly earnings and high labor participation rate indicated that supply rather than demand is driving the labor market which is favorable for a low inflation environment. For the week, the S&P 500 index went up 0.48% to 4308, the Dow Jones Industrial Average lost 0.3%, while the technology-laden NASDAQ composite index increased by 1.6%.
The S&P 500 index formed a bullish hammer pattern this week and closed only 10 points below its 28-week exponential average (EMA). Notably the index has turned positive after 4 weeks of slide and its momentum indicator STO [15,1] has climbed above the over-sold threshold of 20. The index may go back to its upward path if it can close above the trend line next week.
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| The weekly chart of the S&P 500 index |
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