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.
Stocks advanced broadly higher this week, encouraged by the tamed inflation data and positive economic news. The July core PPI reported on Tuesday by the Labor Department was flat month over month ending three months of increase, and the year-over-year CPI, reported Wednesday, fell to 2.9% for the first time in three years. On Thursday, the Commerce Department reported that retail sales jumped 1.0% in July well above the expected 0.4%, bolstering investors' "soft landing" scenario. For the week, the S&P 500 went up 3.93%, closing at 5554. The Dow Jones Industrial Average advanced 2.94%, and the Nasdaq composite index jumped 5.29%.
The S&P 500 has rebounded sharply over the past two weeks, surpassing its 28-week exponential moving average. A continued upward trajectory without a pullback to close above its previous peak of 5670 would confirm a V-shaped recovery. In this scenario, a potential buying opportunity could arise after a retest of the 5670 level. However, if the index retraces back to its 20-day EMA (currently at 5400) or 100-day EMA (currently at 5320) on the daily chart, it would form a W-bottom pattern, presenting another buying opportunity. The market's behavior over the next two weeks will determine whether the recovery follows a V-shaped or W-shaped path.
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| The weekly chart of the S&P 500 index |
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| The daily chart of the S&P 500 index |
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