It was a tough week for the market.  Maybe we have finally seen the end of this rally and are headed into a consolidation.  If you’ve been following this site for sometime, you know I like Elliott Waves a lot!  Take a look at this post to get an idea of where we are in the wave cycle and how you ought to be positioning yourself during this consolidation.

What can we learn from the 2 year weekly chart of the C Fund below?  2 Critically important things.  First, the weekly price closed below the up trend line.  This trend line has been in place for 4 months and had been tested 3 times before this week.  A break in the trend line is significant.  It does not confirm a trend change but it does mean that it’s time to pay very close attention.  Second, while the technical indicators are rolling over, the selling volume is relatively low.  Low volume selling means that the market has not “Thrown in the Towel”.  More selling will happen until the market does throw in the towel.  How do we know when that happens?  Take a look at the volume at the low in January/February 2016.  When we see volume like that, it’s the bottom and time to get into the TSP stock funds.


 

I have a TSP account just like you and I’ve been managing it for over 20 years!  Want to know when I move my money?  Members get an email BEFORE I make a move in my TSP account.  Hit the link below and sign up.  Your retired self will thank you!

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Have a great week!

Jerry