The market keeps charging along with the C fund closing at new all time highs for the week! The long term (2 year weekly) charts of all 3 stock funds continue to look very strong. The short term may be seeing some early cracks. See below..
It was a pretty volatile week for the TSP stock funds. The S&P500 (C Fund) gapped up on Monday before reversing and closing significantly lower for the day. Tuesday and Wednesday continued the decline but, by Friday, the S&P500 closed at all time highs. We need to take a look at the chart to really understand what all this means.
While the week closed with the S&P500 at all time highs (2651.50), the chart shows potential cracks in the short term rally. On Monday the market rose to a high of 2665 before falling to a low of 2626 on Wednesday. While the week closed at all time highs on a daily close basis, this close comes in the middle of the weekly trading range. This may not be an issue. The market could gap up on the open tomorrow and close above 2665 but, that is an important level to watch this week. If we see a close below 2625 before a close above 2665 then we may have a short term problem… Stay tuned..
Long term, all 3 TSP stock funds just keep chugging along! While the C fund closed the week at all time highs, the S and I funds were off a bit. All 3 are above and supported by their long term trend lines, with technical indicators very strong.
The C fund showed a very strong finish for the week, adding to last week’s breakout from several weeks of tight trading. I would not bet against this C fund weekly chart at this point.
The S fund had quite a volatile week, finishing about where it finished last week. The S is still significantly above its long term trend line with strong MACD and Stochastic. I would not bet against this chart right now either.
The I fund is currently the weakest of the 3 long term charts. Having said that, the I is still in pretty good shape, finding support at its long term trend line. Unless and until the price drops below this line and the technical indicators turn negative, I would not decrease a position in the I fund.
Lots of shenanigans can happen on Wall Street during the holidays, not to mention all of the domestic and international political issues on-going. We likely move marginally higher from here thru the end of 2017 but, 2018 could be MUCH different…
Have a great week!