The bulls remained in charge last week as the major stock indices all saw nice gains, capped by a big rally on Friday after a better than expected jobs report.
For the TSP, the C-fund gained2.22% on the week, the S-fund was up 3.66%, the I-fund made 2.85%, while the F-fund (bonds) slipped 0.06% and the G-fund was up 0.03%.
The song remains the same for the S&P 500 as it continues its relentless upward trend. The only hiccup it had was a weak open on Monday last week, which took it below the tight trading channel, but it closed strongly and after Friday’s rally it is back between the parallel support and resistance lines(red).
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Fighting this trend has been very frustrating for the bears and each pullback has brought in anew batch of buyers, which has kept the rally going.
If the market is going to take a break, February is the month for it to happen as historically, after the first few trading days of the month, the historical seasonality becomes a disadvantage so the battle will be between the strong trend and the weak seasonality over the next couple of weeks.