Stocks started the week with some nice gains but could not hold onto them and the week ended mostly flat. Earnings season has wrapped up and we've started a period where stocks tend to underperform, particularly during mid-term election years. The good news is, some charts like the Dow and S&P 500 have been consolidating for a couple of months and may be ripe for a breakout. The bad news is, so far the breakouts have been failing, and indices like the Nasdaq and the Russell 2000 (small caps) have not looked good, so we'll have to take it day by day to see which of these groups takes charge and leads the next big move.
Here are the weekly, monthly, and annual TSP fund returns through Friday, May 16...
After each failed attempt to breakout to new highs, the SPY (S&P 500 / C-fund) pulled back but was able to find support at the 50-day EMA. On both Thursday and Friday the SPY fell back down to the 50-day EMA in early trading, but the bulls stepped up at that point and were able to get some traction pushing the indices off their lows.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Small [FONT=Arial !important]caps don't look quite as good. There is a some rising support that continues to hold (red), but it can't seem to reclaim the 50-day EMA, and that's not healthy in a bull market. This poses a good breakdown possibility, but if the S&P 500 can move to new highs as it repeatedly threatens to do, perhaps the support can continue to hold here.
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Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
[FONT=Arial !important]Bond yields have been falling without any real catalyst. The "experts" seem to think that the economy is improving, and that would usually push yields higher. Perhaps it is the continued concerns out of Russia, or the ongoing bond purchasing program by the Fed? Whatever it is that is going on, the bond market doesn't like and investors are moving money into bonds - Bond yields drop when bond prices (and the F-fund) go up.
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Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up. You can read our daily market commentary at TSP Talk Market Commentary.
Tom Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
Facebook | Twitter
The legal stuff: This information is for educational purposes only! This is not advice or are commendation. 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.
Here are the weekly, monthly, and annual TSP fund returns through Friday, May 16...
After each failed attempt to breakout to new highs, the SPY (S&P 500 / C-fund) pulled back but was able to find support at the 50-day EMA. On both Thursday and Friday the SPY fell back down to the 50-day EMA in early trading, but the bulls stepped up at that point and were able to get some traction pushing the indices off their lows.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Small [FONT=Arial !important]caps don't look quite as good. There is a some rising support that continues to hold (red), but it can't seem to reclaim the 50-day EMA, and that's not healthy in a bull market. This poses a good breakdown possibility, but if the S&P 500 can move to new highs as it repeatedly threatens to do, perhaps the support can continue to hold here.
[/FONT]
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
[FONT=Arial !important]Bond yields have been falling without any real catalyst. The "experts" seem to think that the economy is improving, and that would usually push yields higher. Perhaps it is the continued concerns out of Russia, or the ongoing bond purchasing program by the Fed? Whatever it is that is going on, the bond market doesn't like and investors are moving money into bonds - Bond yields drop when bond prices (and the F-fund) go up.
[/FONT]
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up. You can read our daily market commentary at TSP Talk Market Commentary.
Tom Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
Facebook | Twitter
The legal stuff: This information is for educational purposes only! This is not advice or are commendation. 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.
