Oil Pressure
Stocks spent the week digesting the recent sharp gains that took many of the major indices back up toward their yearly highs. So far this is a healthy consolidation.
For the TSP, the C-fund was down 0.26% last week, the S-fund fell 0.70%, and the I-fund was up 1.28% as the dollar continued its slide. Bonds (F-fund) lost 0.29%, and the G-fund was up 0.06%.
The S&P 500 has been able to push above the March highs but unlike a few of the other indices, has not made a new yearly high. The chart is showing a promising inverse head and shoulders (H&S) formation and if it does continue to form, this current pullback could be a precursor to a breakout that would have an upside target of about 1430, but we’re a long way off from there yet.
Chart provided courtesy of www.decisionpoint.com
With oil reaching $113 a barrel, I would think that stocks would have a difficult time making much headway. This recent pullback in stocks was due, and perhaps oil is the excuse the market needed. I think if oil can stabilize in the coming days and weeks, the stock market may have enough strength to make new highs.
The market leading Dow Transportation Index, which is very sensitive to the price of oil, had already broken out to new high but this recent surge in oil above $110 has it pulling back sharply and testing the 20-day EMA. This index could be the telling story going forward for the S&P 500.
Chart provided courtesy of www.decisionpoint.com
It’s spring break for the kids in our area and I am on the road this weekend so I am going run.
Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.
Tom Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
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.
Stocks spent the week digesting the recent sharp gains that took many of the major indices back up toward their yearly highs. So far this is a healthy consolidation.
For the TSP, the C-fund was down 0.26% last week, the S-fund fell 0.70%, and the I-fund was up 1.28% as the dollar continued its slide. Bonds (F-fund) lost 0.29%, and the G-fund was up 0.06%.
The S&P 500 has been able to push above the March highs but unlike a few of the other indices, has not made a new yearly high. The chart is showing a promising inverse head and shoulders (H&S) formation and if it does continue to form, this current pullback could be a precursor to a breakout that would have an upside target of about 1430, but we’re a long way off from there yet.
Chart provided courtesy of www.decisionpoint.com
With oil reaching $113 a barrel, I would think that stocks would have a difficult time making much headway. This recent pullback in stocks was due, and perhaps oil is the excuse the market needed. I think if oil can stabilize in the coming days and weeks, the stock market may have enough strength to make new highs.
The market leading Dow Transportation Index, which is very sensitive to the price of oil, had already broken out to new high but this recent surge in oil above $110 has it pulling back sharply and testing the 20-day EMA. This index could be the telling story going forward for the S&P 500.
Chart provided courtesy of www.decisionpoint.com
It’s spring break for the kids in our area and I am on the road this weekend so I am going run.
Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.
Tom Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
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.
