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.
Investors kicked off the year with a cautious attitude, sending stocks lower for the week despite signs of economic resilience. Data released throughout the week painted a picture of a surprisingly robust economy, with factory activity exceeding expectations according to the Institute for Supply Management's (ISM) manufacturing gauge. The December jobs report further fueled this perception, as employers added a hefty 216,000 jobs, significantly surpassing forecasts of 170,000. The unemployment rate held steady at 3.7%, defying expectations for a slight increase. However, this robust data doused hopes for an imminent interest rate cut, driving investors towards a more defensive stance. Consequently, the S&P 500 shed 1.52%, closing at 46,979. The Dow Jones Industrial Average dipped 0.59%, while the Nasdaq tumbled 3.25%.
The S&P 500's winning streak snapped this week, painting the first red candle after nine consecutive green ones, as investors adopted a more cautious stance. The index is now 5.2% above its 28-week exponential moving average down from 7.2% last week. With the elevated price and the slowing momentum, we think the pullback will continue in the coming weeks to digest the lofty gains in the past 9 weeks. Looking down, the first support will be the 4550-4600 previous high level and the second support is at the past resistance 4300 level. We shall see how this consolidation plays out.
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| The weekly chart of the S&P 500 index |
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