TSP Talk Weekly Wrap Up

The S&P 500 was down four of five days this week leading to more than a 1% loss in all the TSP stock funds. Anticipation for next week’s vote on whether Britain leaves the Euro Zone has been a hot topic for traders this week. Thursday’s gains were a indication of how stocks will react if Britain were to a leave the Euro Zone with the unfortunate circumstance of the murder of a UK law maker who was in favor of Britain staying in the Euro Zone, increasing the likelihood Britain leaving.

The Fed did not increase interest rates this week which was expected with recent weakness in the economy and
with what seems to be a sensitive market.

Just as with the week before, the F-fund led the week being the only TSP fund (other than the G-fund) to produce positive gains, though the gains were minimal. The I-fund lagged with just under a 2% loss for the week. The C and S-funds also had losses of more than 1% this week.

Here are the weekly, monthly, and annual TSP fund returns for the week ending June 17th:

The SPY (S&P 500 / C-fund) fell below the rising support line created by the February and May lows. The 50-day EMA had the effect of support this week as stocks were unable to close below it. Now the question is whether that will hold and if traders will view the failed rising support line as resistance now. The C-fund was down 1.13% for the week.

The Dow Completion Index (S-fund) also fell below support but was able to close back above it on both Thursday and Friday. Potential support from the 50-day and 200-day EMAs are just below the current price and an open gap above may have kept investors in knowing it is within reach to be closed soon. The S-fund was down 1.28% for the week.

EFA (EAFE Index / I-fund) continued its free fall going into this week but reversed Wednesday to fill one of four open gaps above. Old support may act as resistance when the index pursues the two open gaps that sit above the support line. The I-fund lagged this week with a loss of 1.91%.

AGG (Bonds / F-fund) broke above its rising resistance line intraday Thursday but closed back within its trading channel. An additional loss on Friday gave the F-fund a gain of 0.06% for the week, leading the TSP funds. It would be reasonable to expect this index to fill the open gap below before testing the overhead resistance again.

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.

Tommy Crowley
Weekly Wrap-Ups Archive
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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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