Maybe not this week
Stocks rallied sharply yesterday adding to the confusion about the next
direction of the market. The C and S funds were each up over 2%,
while the I-fund gained just over 1%. Surprisingly, bonds rallied
sharply also, after another successful government debt auction.
The week is not over yet, but based on the charts and indicators, I had
anticipated that we would see some sort of resolution to the direction
of the next move in the S&P 500, but so far it is not to be. After
dropping sharply lower earlier in the week, the indices are now flat to
down slightly on the week, putting us pretty much where we started on
Monday. Today's action may change that.
Chart provided courtesy of
www.decisionpoint.com, analysis by TSP Talk
So, the eight week
consolidation continues, which is healthy for a market that has rallied so
sharply. The big question for investors is, will this resolve itself
to the upside, or downside? The indicators are mixed, which doesn't
help, as we see some good signs and some bad. So, the waiting
continues.
With all of the geopolitical news out there, the global warming bill
pending, and health care reform looming, I am very surprised that the market
is hanging in there. This could be a sign of strength, or the sellers
may step up today, not wanting to hold over the weekend. Tough to say.
Next week will be a shortened week with Friday the 3rd being the observed
Independence Day holiday, but it will be a busy week for economic data.
We will get the employment reports, the PMI, ISM and Consumer Confidence, to
name a few.
I don't have anything overly exciting to add today. It is Friday, the
market has my head spinning, and we can all probably use some rest.
That's all for today. Thanks for
reading, and have a great weekend!
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