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 the sETF model portfolio: Sell IEO, Buy IDU.
US stocks closed lower this week with technology shares leading the way down. Economic data released during the week signals a benign economic environment. The core PCE index, Fed's favorite inflation gauge, went down 0.2% and the unemployment claims came in with 219000, in line with expectation. Despite these positive economic data, all major indexes still finished in the red. For the week, the S&P 500 fell 0.51% to 5277, the Dow Jones Industrial Average decreased 0.98%, and the Nasdaq composite index dropped 1.1%.
A divergence between the S&P 500 index and its momentum indicator has occurred in the weekly chart. The index has made a higher high in the weekly chart while its momentum indicator has made a lower high. This suggests that the recent rally may have run out of steam, and we may see a consolidation period ahead. The index has hovered around the 5300 level for the past 3 weeks after reaching the record high. It remains to be seen whether the index will continue its upward trend or experience a pullback from here.
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| The weekly chart of the S&P 500 index |
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