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 SSPP model portfolio: Sell FDSCX, Buy FIDCX
Stocks closed lower for the third consecutive week as investors grappled with geopolitical friction and stubbornly firm inflation data. Anxiety regarding the ongoing conflict in the Middle East and its impact on the Strait of Hormuz pushed oil prices toward the $100 mark and weighed heavily on sentiment. While a late-week stabilization effort on Friday helped the market claw back some of Thursday's steep losses, the general mood remains prevailingly negative. Economic data released this week added to the defensive tone. On Wednesday, the Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose 0.3% in February, with the annual rate holding at 2.4%. While not a "hot" print, the stickiness in shelter and service costs—coupled with a 0.5% jump in the Producer Price Index (PPI)—suggests that the "last mile" of inflation remains a challenge for the Federal Reserve. The labor market also continues to show signs of cooling from its 2025 highs. Following last week’s disappointing payroll contraction, weekly jobless claims released on Thursday came in at 212,000, indicating a steadying but less robust employment environment. For the week, the S&P 500 fell 1.60% to close at 6,632, the Dow Jones Industrial Average dropped 1.99%, and the Nasdaq Composite decreased 1.26% as high-growth tech remained sensitive to rising Treasury yields.
The S&P 500 index continued its downward trajectory this week, decisively breaking below the 28-Week EMA and 6,700 level before finding a temporary floor at 6,632. The overall trend has turned bearish, with the immediate support sitting at the 6600 psychological mark, which aligns with the 200-day moving average. A failure to hold this "line in the sand" would open the door for a deeper correction toward the 6,450 level. To shift the current negative bias, the index needs to reclaim the 6,800 level. A close back above the 20-day EMA is essential to signal a potential trend reversal.
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| The weekly chart of the S&P 500 index |
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