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 FICDX, Buy FOCPX
Stocks in general closed higher this week, with the S&P 500 and the Nasdaq Composite index finishing at another all-time high. Investors' sentiment was buoyed by a "risk-on" appetite fueled by a cooling geopolitical environment and explosive earnings momentum in the semiconductor space. The formal implementation of a two-week ceasefire and the continued reopening of the Strait of Hormuz have significantly reduced the "war premium" on global trade, allowing a sharp rotation back into high-growth tech and AI infrastructure. Economic data released this week showed that the U.S. economy may have been stronger than previously expected as U.S. retail sales jumped 1.7% in March, the strongest monthly increase since 2023, and the readings for February and January were also revised higher. For the week, the S&P 500 rose 0.55% to close at 7165, the Dow Jones Industrial Average declined 0.44%, and the Nasdaq Composite went up 1.5%.
The S&P 500 index successfully consolidated its breakout above the 7,000 level this week, utilizing the previous resistance as a new primary support floor. The index remains in a strong primary bullish trend, trading well above its 28-week EMA. However, the rapid 12% ascent from the March lows has pushed the index 6% above its trendline in a short period of time, indicating that the market is entering overbought territory and may require a period of sideways consolidation to work off the excess momentum. The immediate upside target is still the 7,200 extension level, and the primary support is now firmly established at 7,000.
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| The weekly chart of the S&P 500 index |
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