We saw some interesting action this four day week producing a potential bottom to these January woes. Nothing is certain but the bulls do have a little momentum on their side as we run into earnings season.
Although the day ended in negative territory, Wednesday’s reversal gave buyers some confidence. The bulls followed up with modest gains on Thursday and over 2% in gains on Friday to give stocks their first positive week of the new year. All the TSP stock funds had a gain over 1% while the F-fund saw its first down week with a slight loss of 0.11%.
Here are the weekly, monthly, and annual TSP fund returns for the week ending January 22nd:
The $SPX (S&P 500 / C-fund) fell below the August lows without a problem early Wednesday but reversed mid-day closing just below them. The index reached the top the declining trading channel Thursday before closing at the support of the August lows. The S&P 500 broke above its declining trading channel Friday for more than a 2% gain on the day and a 1.43% gain for the week.
The Dow Completion Index (S-fund) had similar action but fell below its declining support on Tuesday and remained beneath until Friday’s open where it closed near the highs of the day. The S-fund was up 1.1% for the week which got it out of double digit losses for the year, now it sits at a loss of 9.89% for 2016.
EFA (EAFE Index / I-fund) filled two open gaps this week but opened another in the process. With one now below the index also has three more above to be filled. The September lows are not far above so they may act as resistance if EFA continues up. The I-fund was up 1.24% for the week.
AGG (Bonds / F-fund) began to decline before actually testing the October highs but was not far off. Bonds broke below their rising support Thursday and kept out of the trading channel Friday as the F-fund had a slight loss of 0.05% on the day. After leading the TSP funds thus far this year, the F-fund lagged this week with a slight loss of 0.11%.
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.