Despite some troublesome geopolitical events last week, it was another good week for stocks as both the Fed and encouraging weekly jobless claims helped keep investors from doing much selling.
Here are the up to date TSP fund returns through May 10.
The S&P 500 closed near the highs of the week although very close to some strong overhead resistance. The good news for the bulls is that these resistance lines are rising so in theory, this rally can continue while the S&P never gets over the resistance. Pragmatically, even the bulls would welcome a little pullback at this point, just to refuel, find some support, and keep the upward trend going.
For the bears, they see an overbought market at resistance, and a possible bearish rising wedge pattern.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The SPY (S&P / C-fund) chart above doesn't show it, but there are open gaps on a few of the major index charts that may be targets for any pullback this week. The open gap on the Nasdaq, which was created on the day of the April jobs report, and old resistance line, could be a magnet if we see some selling in the near future.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq is up an amazing 9% in the last three plus weeks off of the April low. The market continues to punish those who have been skeptical of this rally, and while we finally saw a little bit more bullishness from "the herd", there is certainly a lot of non-believers with cash to continue to fuel the rally. Unfortunately, I am one of them. While I'd love to see a 10% correction, the high skepticism most likely means the dips will be bought quickly.
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
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