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 lower for the fourth consecutive week due to geopolitical tensions in the Middle East and resulting high oil prices. The Federal Reserve held the interest rate unchanged after concluding its policy meeting on Wednesday while expressing its concern about the energy shock that will cause trouble for inflation expectations. In addition, the producer price index (PPI) reported by the Bureau of Labor Statistics (BLS) rose 0.7% in February, up from 0.5% in January indicating the sticky inflation situation. For the week, the S&P 500 fell 1.90% to close at 6,506, the Dow Jones Industrial Average dropped 2.11%, and the Nasdaq Composite decreased 2.07%.
The S&P 500 index accelerated its downward slide this week after closing below its 28-week EMA last week, and its weekly momentum indicator sits firmly in the oversold region. By closing at 6,506, the index is now trading well below the critical 200-day EMA, which currently stands at 6594. The negative bias remains firmly in place as the index continues to display lower highs and lower lows behavior on the weekly chart. To stabilize the current decline, the index must first hold the 6,500 psychological support level and reclaim the 6,600 200-day EMA level. If the index fails to hold the 6500 level, it may accelerate its downward spiral toward the 6100 level, which represents the previous high reached in February last year.
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| The weekly chart of the S&P 500 index |
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