After the larger gains from the previous week, Monday had minimal action as the markets were running into resistance coupled with poor economic data and investors started taking some profit mid-week. However, investors remembered how they prefer the economy to look bad when the Fed is looking for a good time to raise interest rates. So naturally after a mid-day dip, buying was relentless into the close Thursday. A slight pull-back mid-day Friday was followed by more buying as the week came to an end.
The S-fund lagged this week and was the only TSP fund that didn’t come out on top for the week. The C-fund led just shy of a 1% gain for the week.
Here are the weekly, monthly, and annual TSP fund returns for the week ending October 16th:
The SPY (S&P 500 / C-fund) pulled back after running into its 200-day EMA but was able to break though it Thursday and even made it through some short-term resistance on Friday. There is still an open gap lingering below that we’d expect to get filled before we see legitimate signs of a bull-market ahead of us. The C-fund was up 0.93% for the week.
The Dow Completion Index (S-fund) had similar action as the S&P 500 but was held up by its 50-day EMA and declining resistance leaving the S-fund with a loss for the week. There is more long-term resistance above the current resistance as well as an open gap below so it would be surprising to see upside action anytime soon. The S-fund was down 0.23% for the week.
EFA (EAFE Index / I-fund) is sitting between resistance and rising support. There are two open gaps below which is normal for EFA but the gaps do tend to get filled. The I-fund was up 0.29% for the week.
AGG (Bonds / F-fund) also saw gains this week despite a slight pull-back on Thursday and Friday as stocks were up. AGG sits right in the middle of its long-term trading channel so isn’t more likely to go in any direction and will probably just react to stock action. The F-fund was up 0.36% 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.
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.