S&P 500 surged past 3000 milestone and broke above key 200-day moving average resistance
Both C and S funds reached new highs since March crash, validating current allocations
Next target is February record high of 3386, suggesting potential continued upside
Looking back at these last two weeks we’ve seen a lot of the items that were discussed previously become a reality. On 16 May I mentioned that “we seem to be range bound about 200 points between a low of 2736 (21 April) and a high of 2939 (29 April)”. Last week I mentioned that “we had a bullish ‘Opening Gap’ which set the precedent for the remainder of the week”. Well that occurred again this past Monday with the S&P 500 opening about 50 points higher than the previous close. As the markets closed this Friday, the S&P 500 gained another 40 points to finish the week and May at 3044. From a technical perspective, the S&P 500 bullish sentiment continued as it broke above its 200 day Moving Average. So let’s go back to the 16 May update again where I mentioned that “we could have another bullish breakout to the upside, plow past 3000, and once more challenge the most recent record high of 3386”. Well, we did break out to the upside (20 May) with the S&P 500 plowing past 3000 (27 May). The next milestone is to “challenge the most recent record high of 3386” set on 19 February. For TSP TIPS, this week both the S and C funds hit new highs from their March lows and as such, we recommend staying with our current allocation.
Looking back at these last two weeks we’ve seen a lot of the items that were discussed previously become a reality. On 16 May I mentioned that “we seem to be range bound about 200 points between a low of 2736 (21 April) and a high of 2939 (29 April)”. Last week I mentioned that “we had a bullish ‘Opening Gap’ which set the precedent for the remainder of the week”. Well that occurred again this past Monday with the S&P 500 opening about 50 points higher than the previous close. As the markets closed this Friday, the S&P 500 gained another 40 points to finish the week and May at 3044. From a technical perspective, the S&P 500 bullish sentiment continued as it broke above its 200 day Moving Average. So let’s go back to the 16 May update again where I mentioned that “we could have another bullish breakout to the upside, plow past 3000, and once more challenge the most recent record high of 3386”. Well, we did break out to the upside (20 May) with the S&P 500 plowing past 3000 (27 May). The next milestone is to “challenge the most recent record high of 3386” set on 19 February. For TSP TIPS, this week both the S and C funds hit new highs from their March lows and as such, we recommend staying with our current allocation.