After a sharp decline on Tuesday morning of last week, stocks basically treaded water the rest of the week. The bulls could not get a rebound going, but the bears couldn’t keep the downside pressure on. We had a Fed FOMC meeting last week, some mixed earnings reports and economic data, and the ongoing presidential campaigns keeping things lively.
Here are the TSP fund returns for the week of October 22 through October 26 and the up to date monthly and annual returns.
The S&P 500 broke below the 50-day EMA and some key support near 1430 on Tuesday, and it has not been able to do too much in the way of recovering those losses yet. The sideways action from Wednesday through Friday could be setting up a base from which to rally from or, the bearish case, we could see a breakdown from what looks like a possible bear flag. Other indices exhibit more clear bear flags than this one on the S&P chart.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
This is not an easy call despite some positive indicators. The charts take precedence and most of them look broken.
Next week we get the October jobs report and it being the last before the election, could be very important and a big market mover.
The TSP Talk Sentiment Survey System remains on a buy signal for next week after the 49% bulls, 40% bears, 1.23 to 1 bulls to bears ratio.
Good luck, and thanks for reading. We will be back after the weekend with a full market commentary.
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.