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 ETF model portfolio: Sell IYW, Buy IYE
Stocks closed sharply lower for the second week as worries about the higher interest rate prevailed. Quarterly corporate earning reports from high-tech companies such as Microsoft, Google, Meta, and Amazon, showed decent results meeting most of Wall Street's metrics. However, sentiments were so pessimistic that investors were only focused on the negatives in their reports. On the economic data front, US third quarter GDP went up more than expected at an annual rate of 4.9% due to strong consumer spending. The core personal consumption expenditures (PCE) price index, excluding food and energy costs increased to 0.3% in September from 0.1% in August, and the year-over-year measure ticked down to 3.7% in September from 3.8% in August. It is widely expected that the FED will halt the rate increase in their policy meeting next Wednesday. For the week, the S&P 500 index went down 2.53% to 4117, the Dow Jones Industrial Average lost 2.14%, and the technology-laden NASDAQ composite index decreased by 2.62%.
The S&P 500 index went down sharply below its 28-week exponential moving average after failing to hold above the trend line last week. The index is 10.6% below its July high of 4607 and is currently 4.2% below its 28-week EMA. Its momentum indicator STO [15,1] has fallen deeply in the over-sold zone. We may see a minor rebound next week but the widespread negative investor sentiment will keep it under the trendline.
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| The weekly chart of the S&P 500 index |
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