I hope everyone enjoyed their holiday weekend. I did something I hadn't done in a long time, if ever - I didn't sign onto the site in anyway for over 2+ days. I needed the break but it was more of a mistake as my server in my office went offline and I couldn't communicate with it like I normally do when I'm away. It looks like everything survived, so let's get to work...
Stocks showed us some typical, light volume, slightly positive biased action on Friday as the Dow gained 45-points on the day, while the broader market did even better.
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The I-fund lagged because of strength in the dollar, and bonds were down slightly.
We didn't do a Weekly Wrap Up this weekend because of the holiday, so for the week all of the funds saw gains with the S-fund leading the way.
Now that the holiday is behind us, we may get the answer to the question that we were asking last week, and that is, was the positive action last week just part of a typical pre-holiday reversal? And if so, does that mean it will reverse back this week?
On Friday morning we get the May jobs report and estimates are looking for a gain of 155,000 jobs, and an unemployment rate of 4.9%. The Jobs Report Contest is now open in the forum. Click here for more info.
The S&P 500 (C-Fund) took the pre-holiday week for a ride right up into the head test area of the head and shoulders pattern. This is a sticky spot for the S&P because it will either be making new highs, or a fail at the head test and there really is no edge either way. Our indicators look like they could go either way as well.
The weekly chart of the S&P 500 shows a promising inverse head and shoulders, but as we've talked about many times before, head and shoulders (or inverted in this case) could either breakout, or come back to test the head.
The DWCPF (S-fund) is within a stone's throw of a multi-month high but it is also testing the head of an H&S pattern and could find some resistance up here if new highs don't come soon.
The Dow Transportation Index was up on Friday but it is still below and testing the important 200-day EMA.
The EFA (I-fund) was down slightly on Friday but on Monday the major overseas markets, Japan, Germany, French, London, and Hong Kong, all posted modest gains during our holiday day off.
The AGG (Bonds / F-fund) was off slightly and remains in a bear flag, which tend to break down, but the 50-day EMA is still holding as support.
Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the allocations of the TSP and ETF Systems. For more information on how to gain access and a list of the benefits of being a subscriber, please go to: www.tsptalk.com/plus.php
Thanks for reading. We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.
