TSP Talk – Weekly Wrap Up

The market had a little hangover earlier last week, after the big jobs report rally on Friday February 1. But a big reversal day on Thursday of last week, followed by a nice rally on Friday, and the market avoided its first losing week of the new year.

The rally on Friday came on very light volume. It almost seemed like holiday trading because of the blizzard in the Northeast, so I am not totally convinced that we are seeing a legitimate breakout here. I guess we’ll find out on Monday.


Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

As I mentioned last week, there is strong resistance above near 1525 in the S&P 500, and it may be that the easy money of this rally that started in mid-November, may have already been made. Any more big gains from here will have to get through that resistance.


Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

The other type of traders, the market timers, don’t tend to perform as well in a market like this and have likely sold already (myself included.) They’d prefer a choppy market to buy low and sell high. They’ll have their day again, but for now, the trend is the bulls’ friend.

Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.

Tom Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
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