TSP Talk Blog

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It was a typical light volume holiday week of trading and the positive seasonality played out as we might have expected. We should see more of the same next week although the rally may be getting a little extended.



Here are the weekly, monthly, and annual TSP fund returns for the week ending December 26:



The SPY (S&P 500 / C-fund) moved above its resistance line and will look to find support there as old resistance can act as support.



As we have mentioned before, the two more common outcomes of inverted head and shoulders patterns are as follows:


As long as the SPY can stay above the neckline, the first option becomes more likely.

The Wilshire 4500 (S-fund) also broke above its neckline and made a new 6-month high, and in the past this kind of breakout has been bullish for the small caps.


Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk


The EFA (EAFE Index / I-fund) has run back up to its 50-day EMA and remains in a downtrend so the upside may be limited unless we see a breakout, which seems unlikely given it is currently in a bear market.


Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk

The AGG (Bonds / F-fund) has remained in a tight trading range, testing both ends of the narrowing trading range as it approaches the apex of the pennant formation. Something has got to give this week.


Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk


Good luck and thanks for reading! We will be back here next week with another TSP Wrap Up. You can read our daily market commentary at http://www.tsptalk.com/comments.php.If you need more help deciding what to do with your account, perhaps one of our premium services can help.

Tom Crowley
www.tsptalk.com
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The legal stuff: This information is for educational purposes only! This is not advice or are commendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.