After a huge first week in 2013, stocks followed through with some modest gains last week. Buyers stepped up each time the stock indices saw any kind of a dip and that might keep stocks buoyant for a while longer.
Here are the TSP fund returns for the week of January 7 through January 11.
The trend in the S&P 500 remains up as it continues to ride along the top side of its ascending trading channel (blue). The September highs (red) may cause a little trouble, but probably not for long. On the downside, the rising support lines (blue) will be our warning signs. 1450 should act as support on any pullback, and if that does not hold, that would likely produce a test of the 50-day EMA, currently at 1430 or about 3% below current levels.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The longer-term weekly chart shows where we could eventually see some strong resistance. If the S&P 500 can move to 1490 – 1500 without much consolidation first, it might be a place where I would consider taking something off of the table and lock in profits.
Chart provided courtesy of www.sentimentrader.com, analysis by TSP Talk
Earnings season has kicked off and in the next few weeks we’ll get some reports from companies that can move the market. Historically the January earnings season tends to be bullish, but in February the market tends to back off a little. Some things to consider while planning your short-term strategy.
Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.
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.