Stocks were initially down this week but the bulls fought back to keep things at par as traders awaited the FOMC policy statement. Nothing particularly new was announced by the Fed; they sustained their dovish behavior as they know how sensitive the market can be otherwise. The statement didn’t change the mood of the week too much except it left traders looking for guidance as to their next move. They found that guidance after the Bank of Japan held back from adding stimulus to the Japanese economy resulting in a 3% drop in the Japanese Nikkei; the selling rippled into the U.S. and continued into Friday to put the S&P 500 down more than 1% for the week.
The F-fund led for the week with additional gains while the TSP stock funds were all down more than 1% with the I-fund lagging.
All the TSP funds were up for in the month of April; the I-fund led with a 1.89% gain while the G-fund was not the place to be this month.
Here are the weekly, monthly, and annual TSP fund returns for the week ending April 30th:
The SPY (S&P 500 / C-fund) filled an open gap during the sell-off Friday. In the process the index fell below its rising support as well as its 20-day EMA for the first time since February. Possible support from the November and December peaks could lie below just above the 50-day EMA to cushion any further downside. The C-fund fell 1.24% for the week but finished April with a 0.39% gain.
The Dow Completion Index (S-fund) fell 1.07% for the week but remained within the rising trading channel that has held since early March. Support from the trading channel as well as the 20 and 200-day EMAs are just below the current price. These conditions set up a short-term safe spot for buyers who put their faith in technical tendencies. The S-fund gained 1.73% in April.
EFA (EAFE Index / I-fund) filled an open gap this week but fell back below the 2015 closing price as it continued to drop. Its 200-day EMA is holding as support at the moment but there are two open gaps below that need to be filled. The I-fund fell 1.46% this week but led the TSP fund in April with a 1.89% gain.
AGG (Bonds / F-fund) tested support again this week which held and since has been heading for the resistant line of the April highs set in early April. The F-fund was up 0.41% for the week as well as for April.
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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