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.
US major indices closed higher with growth stocks outperforming the value stocks. Data released during the week painted a mixed picture of the US economy. The Institute for Supply Management (ISM) which gauges manufacturing activity fell to 48.7 below the 50.0 growth threshold, while the Labor Department reported US added 272000 jobs in May, well above the expected 182000 jobs. Analysts think that the FED will continue to keep the interest rate steady for the summer under the cooling manufacturing activities and hot labor market economic conditions. For the week, the S&P 500 advanced 1.32% to 5346, the Dow Jones Industrial Average increased 0.29%, and the Nasdaq composite index shot up 2.38%.
A divergence between the S&P 500 index and its momentum indicator has started to develop in the weekly chart. The index has made another all-time high while its momentum indicator did not reach its previous high. The slowing momentum suggests that the recent uptrend may have slowly lost steam, and a consolidation period may be on the horizon. The index has continued its up trend after 3 weeks of sideway consolidation and reached our first resistance target of 5340. With the slowing momentum, it is uncertain if the index can reach its second resistance level at 5500.
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| The weekly chart of the S&P 500 index |
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