Stocks spent the week in a steady, low volume, holiday rally.
For the TSP, the C-fund gained 3.80% on the week, the S-fund was up 3.48%, the I-fund added 2.27%, while the F-fund (bonds) lost 0.62%, and the G-fund was up 0.03%.
For the month, the C-fund is now up 1.63% in December, the S-fund has gained 0.70%, the I-fund is still off 2.82%, while the F-fund (bonds) is up 0.27%, and the G-fund has made 0.11%.
Although there wasn’t much conviction because of the low volume, the S&P 500 did break to the upside of the descending trend line, which of course is positive. As is the fact that the index is back above the 20, 50, and 200-day EMA’s.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
We have an inverted head and shoulders pattern, which is also bullish since they tend to break to the upside.
Whatever you think of this market, the strong positive seasonality surrounding Christmas Day should be a major consideration.
Chart provided courtesy of www.sentimentrader.com, analysis by TSP Talk
Many traders take this time of year off leaving mostly investors and money managers trying to pad their portfolios with winners. The light volume could pose a problem should any bad news spring up as it will be easier to move the market.