Stocks opened higher on Monday but the early gains began deteriorating into the close and by mid-Tuesday stocks were falling steadily into red territory. The sell-off continued through to the late trading hours of Wednesday where the bulls stepped back in to buy the dip. The buying continued and modest gains were posted Thursday. The April jobs report was posted Friday morning reporting the U.S. economy added 223,000 jobs in April and unemployment is now at 5.4%. The report excited investors and stocks gapped up at Friday’s open back into green territory for the week but the momentum didn’t hold and intraday trading remained relatively flat for the remaining trading hours.
Here are the weekly, monthly, and annual TSP fund returns for the week ending May 8th:
The SPY (S&P 500 / C-fund) once again made its way through overhead resistance at Monday’s open and by the close was sitting at the resistance line with an open gap bellow. The SPY filled that gap Tuesday and continued its decline, closing bellow the rising support line. The sell-off continued and bottomed at the April lows where the dip buyers rebounded the momentum into Thursday. The SPY gapped up at Friday’s open after traders were satisfied with the jobs report and is back above resistance for the week. There is an open gap bellow that may be filled sooner than later. The C-fund ended the week up 0.44%.
The Wilshire 4500 (S-fund) had a similar week. Long-term support held Wednesday and reversed the momentum. By Friday the Wilshire 4500 was able to break through its short-term decline and closed back above its 50-day EMA. The S-fund was up 0.33% for the week.
EFA (EAFE Index / I fund) gradually declined for most of the week and fell below the rising support line Thursday. EFA gapped up Friday and reached the rising resistance ending the week up 0.84%.
AGG (Bonds / F-fund) rebounded off long-term support Wednesday and momentum was turned around. However bonds continue to stay in a bear market with the 20-day EMA now below the 50-day EMA. There is an open gap bellow after Friday gapped up. The F-fund ended the week down 0.07%.
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.
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.