It was a very tough week for the TSP stock funds. The intra-day chart of the C fund below does not look good but, there is a chance that we have seen a short term low as the technical indicators are rising…. For the week the C fund was down 1.03%, the S fund down 1.52%, and the I fund down 2.84%.
In the long term, we are still looking very strong. The C fund has had 10 weeks of solid price gains since the last time it hit the long term trend line. A one week breather is not a cause for alarm at this point…
The C and S funds are still well above their respective 50WMA. The C fund seems to have found some support but the price needs to get back above the 2875 level and stay there… Unfortunately, the technical indicators are not yet in over sold territory so, we could see continued weakness next week.
The S fund chart is a bit different from the C fund but similar. The S is still above its 50DMA with plenty of room for the technical indicators to move lower. We could get a bounce next week but, don’t be surprised to see continued decline down to the 50DMA and over sold levels on the indicators.
If you’re in a gambling mood, the I fund is your best bet here. The I is a little more than 3% below its 50DMA with indicators in over sold territory. The I fund could go lower from here but, it’s in the best technical position for a rally next week.
It was the first rough week in several months and the losses weren’t extreme. We could definitely see continued weakness next week but, in the big scheme of things, the long term rally is still solidly in place. Having said that, Sep/Oct are traditionally risky months so stay alert!
Have a great week!