S&P 500 dropped second consecutive week, closing at 4432 amid typical September weakness
All three TSP equity funds remain neutral/hold, staying within 2.5% of record highs
Fed meeting Wednesday may reveal bond purchase tapering timeline, impacting future markets
The S&P 500 dropped for the second week in a row closing at 4432 on Friday. September is historically a volatile and weak month for equities, and the rising COVID case count and inflation concerns will not make it any easier for the markets to become more bullish. From a technical perspective we are seeing some contradiction to that historic volatility. While there have been more down days than up in September, there have been no daily moves of more than one percent. Also, while the S&P 500 has moved into the bottom half of the Bollinger Band, we have not seen an oversold expansion of that band. Given that, it gives more of a consolidation appearance. Next week the big news will come out of the Fed meeting on Wednesday where we may get an idea of when the tapering of bond purchases by the central bank will occur. For TSP TIPS, all three equity funds remain in the neutral/hold category and within 2.5% of their record highs. As such, we recommend staying with our current allocation.
The S&P 500 dropped for the second week in a row closing at 4432 on Friday. September is historically a volatile and weak month for equities, and the rising COVID case count and inflation concerns will not make it any easier for the markets to become more bullish. From a technical perspective we are seeing some contradiction to that historic volatility. While there have been more down days than up in September, there have been no daily moves of more than one percent. Also, while the S&P 500 has moved into the bottom half of the Bollinger Band, we have not seen an oversold expansion of that band. Given that, it gives more of a consolidation appearance. Next week the big news will come out of the Fed meeting on Wednesday where we may get an idea of when the tapering of bond purchases by the central bank will occur. For TSP TIPS, all three equity funds remain in the neutral/hold category and within 2.5% of their record highs. As such, we recommend staying with our current allocation.