Key support level at 3215 for S&P 500; break below could signal further downside risk
The S&P 500 started out the week with nice bullish pop of 1.3% on Monday and another 0.5% on Tuesday. On Wednesday, the Fed announced that they will keep interest rates near zero for years until the U.S. economy heals from the effects of the COVID 19 pandemic and the labor market recovers. Despite these accommodating remarks, the markets started to sell off with the S&P 500 down for the third week in a row closing at 3319 on Friday. From a technical perspective, our next important threshold support level is 3215, the S&P 500’s closing price on 24 July. Hopefully we’ll remain above that number and establish a bottom. Lastly, it should be noted that this week will are now six months removed from those 23 March Coronavirus lows. For TSP TIPS, we’re seeing a tightening of the performance ranking spread between the equity funds (C/S/I) and will be poised for another reallocation next week if warranted.
The S&P 500 started out the week with nice bullish pop of 1.3% on Monday and another 0.5% on Tuesday. On Wednesday, the Fed announced that they will keep interest rates near zero for years until the U.S. economy heals from the effects of the COVID 19 pandemic and the labor market recovers. Despite these accommodating remarks, the markets started to sell off with the S&P 500 down for the third week in a row closing at 3319 on Friday. From a technical perspective, our next important threshold support level is 3215, the S&P 500’s closing price on 24 July. Hopefully we’ll remain above that number and establish a bottom. Lastly, it should be noted that this week will are now six months removed from those 23 March Coronavirus lows. For TSP TIPS, we’re seeing a tightening of the performance ranking spread between the equity funds (C/S/I) and will be poised for another reallocation next week if warranted.