It was a short week for the market with no trading on Thanksgiving and only half a day of trading on Friday. However, it was still an important week for the TSP stock funds. The S fund has been leading the market for some time. The S fund had been in about a 6 week consolidation until the middle of last week when it found support at the 50DMA and broke out to the upside. Since we have seen the S fund lead the C and I funds lately, we would expect the C and I to follow the S higher and that’s what happened this week. All three TSP stock funds are now at new highs for the year with the technical indicators pointed higher.
There is no way to tell how long this rally will last but, I wouldn’t bet against it right now… Here’s a short term view of the S fund and its breakout last week..
The short term chart of the S&P500 (C Fund) is looking strong. It didn’t quite hit the 50DMA before reversing and closing at new highs this week. The MACD/Stochastic are about to turn positive and the RSI still has room to move upward before reaching over bought territory. We’re likely to see prices on the C fund move higher from here in the short term.
The long term charts of the 3 TSP stock funds are looking very strong as well. On a weekly basis, all 3 TSP stock funds hit new highs this week after breaking out of short consolidations. The MACD/Stochastic and RSI look great for all 3 funds on a weekly basis.
The late Summer/Fall market fears are behind us with very little consolidation having taken place. By some measures, this market is over valued and needs a correction to weed out some of the gains from the past year. By other measures, the market looks very strong with little reason to be concerned. Eventually this market will roll over but, right now, it marches higher and we should enjoy the gains.
Have a great week!