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 sETF model portfolio: Sell IYW, Buy IAT
Stocks advanced modestly higher this week with the Fed chair Jerome Powell hinting at a rate cut in September in his speech at the annual economic symposium in Jackson Hole, Wyoming. The economic data released over the week such as Flash manufacturing PMI, Flash service PMI, and existing home sales, all aligned with expectations. However, the non-farm payroll count was revised downward by a significant 818,000, far exceeding forecasts. For the week, The S&P 500 went up 1.45%, closing at 5634, the Dow Jones Industrial Average advanced 1.27%, and the Nasdaq composite index increased 1.4%.
As the S&P 500 index continues its rally, a bullish "V" shape formation will be completed if the index closes above the previous high of 5670. However, if the index fails to close above its previous high and falls right back, a bearish double-top pattern will be formed which will cause the index to fall back to the trend line support at 5300. For the first scenario, a potential entry point might be after the index surpasses the previous high and then retraces slightly to retest the support. In the second scenario, waiting for a rebound from the trendline support could mark the completion of the W-shaped recovery and offer an entry opportunity.
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| The weekly chart of the S&P 500 index |
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