The S&P 500 finally broke above that May 7th resistance level, closing the week at a record high of 4247. The week started with breaths held waiting for Thursday's CPI report, which came in at 5%. While inflation is rising at its fastest pace since 2008, the market digested it well as we transition after the pandemic recession. For instance, the 10-year Treasury yield hit a three-month low as it crossed below 1.5%. Last week's jobless claims also came in at a pandemic low of 376,000 and the University of Michigan's consumer sentiment came in above market expectations. Next week we'll watch as the Federal Open Market Committee meets Tuesday and Wednesday to discuss any changes the central bank will make with monetary policy due to inflation. From a technical perspective, on Thursday the S&P 500 gapped up at the open and did the same on Friday. What was extremely satisfying was the fact the S&P 500 finished strong in the last 30 minutes of the trading week. Hopefully this bullishness will carry through to next Monday and that 4232 mark will now revert to a support level. For TSP TIPS, it was a nice week as the I fund hit new record highs on Monday and Tuesday before giving way to the C fund, which hit new highs on Thursday and Friday. As such, well maintain our current allocation in those funds.
The S&P 500 finally broke above that May 7th resistance level, closing the week at a record high of 4247. The week started with breaths held waiting for Thursday's CPI report, which came in at 5%. While inflation is rising at its fastest pace since 2008, the market digested it well as we transition after the pandemic recession. For instance, the 10-year Treasury yield hit a three-month low as it crossed below 1.5%. Last week's jobless claims also came in at a pandemic low of 376,000 and the University of Michigan's consumer sentiment came in above market expectations. Next week we'll watch as the Federal Open Market Committee meets Tuesday and Wednesday to discuss any changes the central bank will make with monetary policy due to inflation. From a technical perspective, on Thursday the S&P 500 gapped up at the open and did the same on Friday. What was extremely satisfying was the fact the S&P 500 finished strong in the last 30 minutes of the trading week. Hopefully this bullishness will carry through to next Monday and that 4232 mark will now revert to a support level. For TSP TIPS, it was a nice week as the I fund hit new record highs on Monday and Tuesday before giving way to the C fund, which hit new highs on Thursday and Friday. As such, well maintain our current allocation in those funds.