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 closed sharply lower this week as worries about recession weighed on investors' sentiment. Data released during the week all painted a slowdown in economic growth. The ISM manufacturing PMI released on Tuesday remained firmly in contraction territory in August, and the July job openings reported by the Labor Department on Wednesday fell to 7.67 million, the lowest level since 2021. On Friday, the Labor Department reported that the US added only 142K jobs well below the 164K jobs estimation. For the week, The S&P 500 went down 4.25%, closing at 5408, the Dow Jones Industrial Average fell 2.93%, and the Nasdaq composite index plunged 5.77%.
The S&P 500 index failed to close above its previous high of 5670 and plunged significantly to 5408, near its 28-week exponential moving average of 5309. This development has invalidated our anticipated "V"-shape recovery. Instead, a "W"-shape recovery becomes more probable if the index can find support around 5300 and successfully tested that level. However, the recent price action has formed a double top bearish formation with the neck line support at 5100. If that support was broken, we will see a major down turn which may take the index down to previous high of 4600. Despite this bearish scenario, the expected interest rate cut by the Federal Reserve in its upcoming meeting on September 17-18 suggests that a "W"-shaped recovery remains a more likely outcome.
 |
| The weekly chart of the S&P 500 index |
No comments:
Post a Comment