It was another low volume, lazy week for the stock market with the S&P500 (C fund) gaining 0.5%. While the market drifts higher, we’re looking for a short term top followed by several months of consolidation before a final run up thru the end of 2017. The timeline isn’t as important as the look of the chart. We still have more room for prices to move a bit higher from here before a final short term high is in place. The longer prices trickle higher, the more likely we won’t see a long term high until sometime in early 2018. Regardless of the actual timing, we have a pretty good road map of what will happen over the next 6 months. (See last weekend’s post for these details).
In the short run, the market still has some room to move higher within the price channel below. The RSI is a leading indicator and is just approaching over bought levels. MACD/Divergence look to be topping out so I would not expect to see prices get significantly higher from here (2500 maybe..).
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Have a great week!