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 RSP model portfolio: Sell 42635, Buy FDGRX
Stocks closed the final week of May on a high note, with the S&P 500 surging to a new closing record of 7,580. The rally was driven by a relentless "risk-on" appetite as investors looked past lingering macroeconomic concerns to focus on the explosive growth within the information-technology sector. While short-dated U.S. Treasury yields nudged higher following a University of Michigan survey that indicated sticky inflation expectations, the market largely shrugged off these signals and instead fixated on the unprecedented "AI frenzy". For the week, the S&P 500 gained 1.43% to close at 7580, the Dow Jones Industrial Average increased 0.9%, and the Nasdaq Composite rose by 2.39%.
The S&P 500 is displaying classic signs of a "momentum-driven" market. Closing at 7,580, the index has decisively cleared the psychological 7,500 resistance level and is currently in "blue sky" territory, meaning it is trading at all-time highs with no immediate overhead technical resistance. However, we must remain vigilant for the potential of short-term mean-reversion pullbacks. With the index at an all-time high, the immediate price target (resistance) has been raised to the 7700 level. The 7500 level has been flipped from a resistance to a short-term technical support with 7400 as a further down side support.
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| The weekly chart of the S&P 500 index |
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