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.
Trading signal occurs in SSPP model portfolio: Sell FDGRX, Buy FCNTX
Stocks closed the week sharply lower as worries about geopolitical tension, less dovish comments from the FED chairman, and higher long-term treasuries weighed on investor sentiments. Positive economic data such as better-than-expected October retail sales and a lower weekly jobless rate also support keeping the rate “higher for longer” scenario. On Friday, the yield of 10-year treasury bonds reached 5% in intraday trading, the highest level in sixteen years. Higher bond yield pulls away investments for stocks and causes stock price volatility. For the week, the S&P 500 index went down 2.39% to 4224, the Dow Jones Industrial Average lost 1.61%, and the technology-laden NASDAQ composite index decreased by 3.16%.
The S&P 500 index went up at the beginning of the week trying to stay above its 28-week exponential moving average. However, it failed to hold up and plunged below the trendline as the week progressed. In addition, the index has experienced two big rejections at the 4400 level in the last two weeks. The index's momentum indicator STO [15,1] has turned south and fallen back below the over-sold threshold of 20. With this new data point, we think the index will stay below the trend line for a few more weeks before it turns around.
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| The weekly chart of the S&P 500 index |
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