After a weak jobs report, stocks opened lower on Friday. The bulls made a coupe of attempts to buy the dip in the morning, and each time the bears fought back, but finally after about 1 PM ET the bears seemed to given in and we saw the indices close with decent gains. The Dow ended the day up 80-points, but for the week it lost 33-points.
[TABLE="width: 89%, align: center"]
[TR]
[TD="width: 180, align: center"]
[TD][/TD]
[TD="align: center"] Daily TSP Funds Return
[TR]
[TD="align: right"] [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
If you missed it, there was a gain of 160,000 jobs added in April, which was more than 40,000 fewer than expected and there were some negative revisions made to the prior two months reports so there does seem to be more signs of an economic slowdown. The unemployment rate remained at 5.0%. The question was, is the data bad news for stocks - for obvious reasons, or good news being it may keep the Fed from acting in the June FOMC meeting?
The S&P 500 (C-Fund) rebounded after temporarily falling below the 50-day EMA after the jobs report. There's a possible falling wedge formed, which would be modestly bullish, but it remains below some key resistance near 2060.
The weekly chart shows that the S&P 500 may have entered another consolidation area which could chop around for a while before settling on a longer-term direction. The 2100 area near the recent highs is the resistance to watch and the 50-week EMA may be the support so that's about a 5% trading range.
The DWCPF (S-fund) hit and held at the 50-day EMA. So far so good but it seems to be flirting with trouble since it is back below the 200-day EMA.
The Nasdaq 100 (QQQ) has already flirted with trouble and lost as it trades below the key 50 and 200-day EMAs. The February 1st high could be potential support as charts do tend to come back to test the prior breakout level before making another move higher. That could be wishful thinking as the chart looks a little broken, but it may be oversold in the short-term.
The EFA (I-Fund) rallied back to the 50-day after falling below it earlier in the week. There's an open gap above that may garner some attention, but there is also one down near 56.0. This chart remains in an uptrend but there are certainly some cracks forming.
The AGG (Bonds / F-fund) pulled back modestly while stocks rallied in afternoon trading Friday. It remains above the breakout level and that's the key level to watch now - about 110.75.
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.
