TSP Talk Blog

Friday's positive reversal day followed-through on Monday and the Dow gained 113-points, and the S&P made a new intraday 2016 high, closing at its highest level of the year. This is coming on the heals of a weak jobs report on Friday that initially had investors running for cover.

Daily TSP Funds Return More returns

Janet Yellen spoke Monday reiterating the need for interest rate hikes, but the chances of a June hike, and possibly July, was diminished after that weak jobs report.

The indices are a little stretched but we're seeing some breakouts and the wall of worry continues to be climbed.

The SPY (S&P 500 / C-Fund) made a new high for 2016 passing above the April high and closing above last Thursday's previous closing high. Volume was light as investors stay worried, but the bears have not been able to put up much of a fight, despite their best efforts on Friday morning.




The DWCPF (S-fund) remained in its tight rising trading channel, closing for a 4th day above the April highs. It still has time to be considered a fake-out, but one or two more closes above April's high and the breakout is all but confirmed.




The EFA (I-fund) was up and the recent weakness in the dollar, after the jobs report, has helped it try to catch up after lagging for a while.




The dollar (UUP) gapped down on Friday after the jobs report, which is why gold and other commodities rallied on Friday, but also why the I-fund led the stock funds. There is a small gap near 24.20 that may need to be filled, but clearly the big overhead gap just below 24.70 is the one that may need attention in the short-term and cause the I-fund some problems if it does get filled.




The AGG (Bonds / F-fund) drifted slightly lower yesterday after Friday's rally. The gap will look to get filled, but that May high could try to hold it up as support.




Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the allocations of the TSP and ETF Systems. For more information on how to gain access and a list of the benefits of being a subscriber, please go to: www.tsptalk.com/plus.php

Thanks for reading. We'll see you back here tomorrow.

Tom Crowley


Posted daily at www.tsptalk.com/comments.php

The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. 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.