TSP Talk Weekly Wrap Up

Investors were taking a breather midweek after sending the Dow Jones Industrial Average and S&P 500 to record closes on Monday and it looked as if we were going to see another flat week for stocks. However, stocks hit a wall on Friday and retreated after the strong jobs report was released as the big numbers brought interest rate hike possibilities back into the foreground.

Here are the weekly, monthly, and annual TSP fund returns for the week ending March 6th:

The SPY (S&P 500 / C-fund) reached new highs Monday but after a bad reaction to the jobs report on Friday it ended the week down 1.53%. The S&P 500 has some strong support from the 50-day EMA as well as two old resistance lines. There is an open gap from the beginning of February which may be subsequentlyfilled if support is broken.

The Wilshire 4500 (S-fund) broke below its rising support line during Friday’s downward trend and finished down 1.05% for the week.

The EFA (EAFE Index / I fund) had the largest loss of the TSP funds this week losing 1.85% and broke below its short-term trading channel Friday. The 50-day EMA is just cents below the 200-day EMA, as mentioned yesterday in the Market Commentary, the 50-day EMA moving above the 200-day EMA would be a bullish longer-term sign.

This chart gets a little messy but a few things happened for AGG (Bonds / F-fund) this week worth mentioning. First off the bear flag we’ve been keeping an eye on came back into play after a couple of fake outs from the week before, and in the process formed a head and shoulder pattern. We’d expect both a bear flag and a bearish and shoulder pattern to break down which is exactly what happened Friday. The break down resulted in a new overhead open gap and also broke through the rising support line. The F-fund ended the week down 1.01%.

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.If you need more help deciding what to do with your account, perhaps one of our premium services can help.

Tommy Crowley
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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.

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