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.
The structural push toward new record territory hit an aggressive wall of distribution this week, putting an abrupt end to the mid-July recovery. Stocks were weighed down by large-cap tech and artificial intelligence (AI)-linked shares despite encouraging results from Taiwan Semiconductor Manufacturing and chip-machine supplier ASML. On the economic data front, the June CPI and PPI all fell more than expected, which reduces the odds for a rate hike in the next Fed policy meeting under the new Chairman, Kevin Wash. For the week, the S&P 500 fell 1.55% to close at 7457, the Dow Jones Industrial Average retreated 0.93%, and the tech-heavy Nasdaq Composite went down 2.9%.
On the technical side of the S&P 500 index, the heavy volume slide on Friday has forced a definitive break below the short-term 10-day and 20-day EMAs, signaling that the daily chart is entering a deeper phase of high-level consolidation. However, on the weekly chart, the index remains in sideways consolidation, awaiting the 28-week EMA to catch up. Looking above, the 7,500 level remains the short-term technical resistance. A clean, high-volume weekly close above this level is required to neutralize the recent corrective posture and open the path toward 7,700. On the other hand, the tested 7,200 level acts as a defender for any near-term pullbacks. As the index stays above the 28-Week EMA, the longer-term structural uptrend remains intact. We will monitor the index's behavior around its 28-Week EMA over the next few weeks.
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| The weekly chart of the S&P 500 index |
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