Fund share prices as of: 6/06/07

Fund -	G Fund	F Fund	C Fund	S Fund	I Fund
	11.95	11.25	16.92	20.72	24.56
$  Change -	+0.00	+0.00	-0.15	-0.23	-0.27
% Change -	+0.00%	+0.00%	-0.88%	-1.10%	-1.09%
	L2040	L2030	L2020	L2010	L Income
	18.33	17.42	16.58	15.22	13.19
$  Change -	-0.15	-0.13	-0.10	-0.06	-0.02
% Change -	-0.81%	-0.74%	-0.60%	-0.39%	-0.15%

Here we are again

Another little tumble by stocks on Thursday put the market in a very familiar position.  If the bears are going to put forth any sort of effort into a pullback, the next day or two is the time they need to do it.

The S&P 500 has now moved down to the 20-day moving average and to some recent support lines.  This is where the bulls usually take over and move the index up to new highs.  Can they muster up the strength to do it again or will the bears keep the pressure on?  It will be important for the bulls to hang onto 1500, otherwise we will see the first lower low since March and that could spook investors.
 

                                     Chart provided courtesy of www.decisionpoint.com

The market is quite overbought in the short-term and breadth (number of stocks up vs. down) was in extreme negative territory the last couple of days - typical readings leading to at least a little bounce.

The recent rise in interest rates (bond yields) has increased the rate of return on the G fund payout moving it up from 4.625% to 5%.  That means we could see a slight increase in the penny payouts in that fund.  I had anticipated the penny gain this Friday, but this recent development makes today a possibility. 

Regardless of what happens to bonds and the F fund in the intermediate and long-term, a little rebound here is due.  You can see below that the AGG bounced off of the 200-day moving average yesterday, and there is a gap to fill up near 99. 


                                   Chart provided courtesy of www.decisionpoint.com

But with the way bonds and the F fund have been acting, taking that guaranteed gain in the G fund may sound enticing.

After being out of the market the last two days, the EbbChart System is in the I fund today but will make an interfund transfer this morning to go back into the G fund for Friday.  I told you this was an active system.  Active and impressive.  Check out the ebbchart page for more info.

Trader Fred's TSP Trader System remains in the market.  Read more on his system page.

Did you take this week's sentiment survey?

That's all I have for today.  I am currently 100% F fund.  See you tomorrow!