The Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, and sETF have been posted on the "Rankings" and "Trading Logs" pages.
Trading signal occurs in the sETF model portfolio: Sell ITA, Buy IBB
Stock markets finished the week sharply lower, driven by increasing concerns over stretched AI stock valuations and the sustainability of massive tech investments. A major focus was the NVIDIA earnings report released after-market on Wednesday. Despite the chipmaker posting better-than-expected revenue and earnings with positive forward guidance, its stock price experienced significant intraday volatility, ultimately closing 3.15% lower after an initial surge on Thursday. The mixed reaction highlighted investor anxiety regarding the broader AI boom. On the economic front, the delayed September jobs report showed the US economy added 119,000 jobs, exceeding estimates. However, the unemployment rate ticked up to 4.4%, its highest level in nearly four years, suggesting a cooling in the labor market. For the week, the S&P 500 finished 1.95% lower to close at 66024, the Dow Jones Industrial Average lost 1.91%, and the Nasdaq Composite index slid 2.74%.
On the weekly chart below, the S&P 500 index continued its pullback, posting a weekly loss of 1.95% . The index has dropped significantly, now trading below its 50-day Exponential Moving Average (EMA) for the first time since April, and is currently sitting near its 100-day EMA support level. This decline brings the index closer to its next key support levels, including the 28-week EMA around 6400 and the 200-day EMA around 6300. We view this current move as a healthy consolidation phase, digesting the rapid, uninterrupted gains seen since April. Given the shrinking upside momentum and increased volatility this month, this consolidation may persist for a few more weeks. We recommend patiently awaiting a clearer setup before looking for new buying opportunities.
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| The weekly chart of the S&P 500 index |
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