Greece bailout talks catalyzed stocks to have a strong open on Monday, however there was an early peak and stocks closed off the highs. Tuesday opened high as well but faded into negative territory by mid-day where buyers stepped back in to reach some modest gains by the close. Wednesday opened lower and stocks continued to decline into the close as negotiations with Greece were not as set in stone as was originally thought. Stocks attempted a comeback early Thursday but peaked early and dwindled away into the close leaving stocks in negative territory for the week. On Friday stocks closed virtually flat with a slight loss but intra-day swings adduce traders are still anticipating the veracity of the Greek bailout situation.
The I-fund gapped up quite high on Monday declining from there the rest of the week but stayed in positive territory. The F-fund confirmed the bear flag.
Here are the weekly, monthly, and annual TSP fund returns for the week ending June 26th:
The SPY (S&P 500 / C-fund) was unable to move past the mid-May high’s on Monday higher open but instead formed a top of what we’ll now call the the mid-June highs. With uncertainty with the Greece bailout, investors took their profits while major markets are in an unstable state. The SPY broke below the 50-day EMA momentarily on Friday but the support held and it closed between the 20-day and 50-day EMA. The C-fund had a 0.37% loss for the week.
The Dow Completion Index (S-fund) was able to go two more days above the April high’s and reached a new high on Tuesday but fell under the highs on Wednesday. Old resistance couldn’t hold as support and by Friday the the Dow Completion Index was back under resistance. The 50-day EMA is not far below and if the Greece problem continues we may see it test it for support next week. The S-fund was down 0.64% for the week.
EFA (EAFE Index / I fund) gapped up Monday nearly filling an old gap in the process but not quite. EFA spent the remainder of the week attempting to fill the gap left by Monday’s open. Now EFA is surrounded on both sides by partially filled gaps and again negotiations in Greece should dictate its next move. The I-fund led the TSP funds and was up 0.91% for the week.
The AGG (Bonds / F-fund) couldn’t stay above the 200-day EMA and broke to the downside of the bear flag we’ve watching. Bonds continued to decline throughout the week and gapped down slightly on Friday leaving an open gap above. The F-fund was down 0.90% for the week.
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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