Resistance
Stocks rallied early last week pushing the S&P 500 up toward the descending trend line, but after a few attempts at a break above it, the resistance won the battle and the index headed south forming what looks to be another lower high. The downward trend remains intact.
Friday’s sell-off took away the week’s earlier gains in the TSP funds. For the week, the C-fund lost 1.20%, the S-fund fell 2.23%, and the I-fund managed a 0.05% gain. Bonds (F-fund) rallied 0.63%, and the G-fund added 0.05%.
We had a nice bear market rally, and while there are some positive looking indicators out there, the technical damage to the chart is pointing to more downside action.
Charts provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Last week we talked about the initial upside targets being in the 1090 to 1100 area, and the S&P 500 was able to get there, but the pullback from that level is giving us an early indication that the bear market rally may be over.
The 50-day exponential moving average (EMA) is now below the 200-day EMA and the S&P 500 is now below the 20, 50, and 200-day EMA’s. As long as this remains the case, the market is telling us that we should probably expect bearish outcomes and having a good defensive plan may be wise.
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
Stocks rallied early last week pushing the S&P 500 up toward the descending trend line, but after a few attempts at a break above it, the resistance won the battle and the index headed south forming what looks to be another lower high. The downward trend remains intact.
Friday’s sell-off took away the week’s earlier gains in the TSP funds. For the week, the C-fund lost 1.20%, the S-fund fell 2.23%, and the I-fund managed a 0.05% gain. Bonds (F-fund) rallied 0.63%, and the G-fund added 0.05%.
We had a nice bear market rally, and while there are some positive looking indicators out there, the technical damage to the chart is pointing to more downside action.
Charts provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Last week we talked about the initial upside targets being in the 1090 to 1100 area, and the S&P 500 was able to get there, but the pullback from that level is giving us an early indication that the bear market rally may be over.
The 50-day exponential moving average (EMA) is now below the 200-day EMA and the S&P 500 is now below the 20, 50, and 200-day EMA’s. As long as this remains the case, the market is telling us that we should probably expect bearish outcomes and having a good defensive plan may be wise.
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
