Stocks opened higher Monday, however the bears started to take control and before long we saw negative numbers across the board, possibly fueled by low expectations in earnings. Negative momentum continued into Tuesday’s open but the bulls fought back and the S&P 500 closed nearly flat.
Some strong earnings reports led to decent gains Wednesday but most of that was taken back during the final hours of trading. After a slower start, we saw a spike down late Thursday and the momentum started to go the bears’ way into the close. By Friday’s open the damage was done. Investors spent the rest of the day holding on for dear life trying to limit the damage.
Here are the weekly, monthly, and annual TSP fund returns for the week ending April 18th:
The SPY (S&P 500 / C-fund) found its overhead resistance line Wednesday and Thursday but, just as its previous attempts in mid-March, failed to break through. The sell off on Friday drove the S&P 500 down to test its rising support line which also held and the bounce pushed it off its lows into the close. An open gap now lingers above and if the rising support holds through next week we should see it filled. The C-fund ended the week down 0.98%.
The Wilshire 4500 (S-fund) was able to reach new highs this week and its two week tight range rising trading channel was broken Friday and was also dragged down to test its short-term rising support line which was able hold. The S-fund was down 1.01% for the week.
The EFA (EAFE Index / I fund) was down slightly for the week and is now surrounded by two open gaps below and one just above left from Friday.
AGG (Bonds / F-fund) had modest gains for the week but was unable to break through its resistance line from late January highs. Bonds are now being wedged between overhead resistance and rising support so will see if investors trust bonds to be a good place to put their money if stocks don’t improve.
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 the Market Comments page. If you need more help deciding what to do with your account, perhaps one of our Premium Services can help.
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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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