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.
Stocks closed higher this week as major indices regained their footing following a volatile start to the year. While anxiety about AI spending lingers, a landmark Supreme Court ruling on Friday striking down Trump's tariffs sparked a significant relief rally, particularly for e-commerce and retail sectors. Economic data released this week reflected a cooling trajectory for growth; the Bureau of Economic Analysis (BEA) reported on Friday that Q4 2025 GDP grew at an annualized rate of 1.4%, down from 4.4% in the previous quarter and well below the consensus estimate of 2.8%, largely due to the impact of last year’s government shutdown. However, the labor market and inflation continue to show signs of a "soft landing." On Thursday, the Department of Labor reported that initial jobless claims fell to 206,000, beating expectations. This follows the January data, where the US added 130,000 jobs, maintaining an unemployment rate of 4.3%. Inflation also continues its steady descent; the latest CPI data shows a 2.4% year-over-year increase, down from 2.7% in December. For the week, the S&P 500 went up 1.39% to close at 6909, the Dow Jones Industrial Average rose 0.25%, and the Nasdaq Composite index increased 1.51%.
The S&P 500 index successfully broke out of its negative bias this week, moving back toward the upper end of the 6800–7000 trading channel. By closing at 6,909, the index has reclaimed its 20-day and 10-day EMAs, signaling a shift in short-term momentum. However, to resume its upward trajectory, the index has to close above the 7000 resistance. On the downside, if it fails to hold the 6800 support zone, we may see a further test of the 6700 psychological and 28-week EMA support level.
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| The weekly chart of the S&P 500 index |
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