TSP Market Summary: Week of January 07, 2017

By Roy Weisert, PhD, CFP

Key Takeaways

  • Dow Jones hit strong resistance at 20,000 level, peaking at 19,999.63 before retreating
  • Commentary recommends staying fully invested in stock funds (C/S/I) during this stall period
  • Prolonged resistance suggests potential for stronger rally once 20,000 level is breached

Resistance, Resistance, Resistance. That’s the word that comes to mind as the Dow continues its march to 20,000. Resistance is typically defined as a level where the markets stall out, and that’s just what we’re seeing on the Dow. On Friday, the Dow had an intraday high of 19,999.63 before retreating and closing the week at 19,963. The good thing about resistance is that typically the longer this pressure persists (as it has over the last month), the stronger the rally will be when it eventually breaks above that level. As such, we remain fully invested in the equity funds (C/S/I).