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 significantly higher this week, with the S&P 500 achieving a historic milestone by closing above the 7,000 mark for the first time. The rally was fueled by better-than-expected Q1 earnings from major financial institutions and semiconductors, alongside growing optimism that the geopolitical conflict in the Middle East may be approaching a diplomatic de-escalation. While the U.S. implemented a strategic naval blockade on Monday, the market focused on the resilience of corporate profits. On Thursday, TSMC (TSM) reported a stellar 35.1% year-over-year revenue increase, indicating the robustness in AI hardware demands. Economic data released this week supported the "soft landing" narrative despite some inflationary friction. On Tuesday, the Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) for March rose 0.5%, indicating some "stickiness" in wholesale prices. However, investors looked past this headline, encouraged by Thursday’s weekly jobless claims, which remained steady at 207,000, down from the prior week’s revised reading of 218,000, confirming that the labor market has not yet been significantly dampened by the recent energy shock. For the week, the S&P 500 jumped 4.54% to close at 7126, the Dow Jones Industrial Average increased 3.19%, and the Nasdaq Composite shot up 6.84%.
The S&P 500 index completed a decisive breakout this week, clearing the 7,000 psychological and technical resistance on high relative volume. This move effectively confirms the "V-shaped" recovery from the March lows and puts the index back into a primary bullish trend. The index is now trading well above its 28-week EMA. The next price target is 7200, while the immediate support down below is the 7000 level, which flipped from resistance to support. A successful "back-test" of this level would provide a high-conviction entry point for those who missed the initial leg of this rally. The secondary support sits at the 28-week EMA of 6712.
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| The weekly chart of the S&P 500 index |
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