History has been repeated with the S&P 500 closing out September down 4.8% which snapped a seven month win streak. It was the worst month of the year and the worst month since the March 2020 pandemic market sell-off. For the first time this year the S&P 500 closed 5% below its most recent record high, the last being 2 September. The week started with a volatile 10-year Treasury yield rising which in turn negatively affected tech stocks. We did see economic reopening sectors make some gains this week with Covid numbers off their peak and the first day of October had gains with news of an oral treatment for Covid-19 boosting the markets. From a technical perspective, the S&P 500 moved more than one percent on three out of five trading days this week. However, even with Fridays nice gain, the S&P index fell 2.2% for the week and closed at 4357. On the economic front, next week we have the payroll report on Friday following by earnings season commencing towards the end of October. For TSP TIPS, all three equity funds (C/S/I) remain below their 50 day Moving Averages (MAs), but above their 200 day MAs. As long as they remain in this channel, we will probably retain the increased cash position that we moved into with our Mid-Week alert
History has been repeated with the S&P 500 closing out September down 4.8% which snapped a seven month win streak. It was the worst month of the year and the worst month since the March 2020 pandemic market sell-off. For the first time this year the S&P 500 closed 5% below its most recent record high, the last being 2 September. The week started with a volatile 10-year Treasury yield rising which in turn negatively affected tech stocks. We did see economic reopening sectors make some gains this week with Covid numbers off their peak and the first day of October had gains with news of an oral treatment for Covid-19 boosting the markets. From a technical perspective, the S&P 500 moved more than one percent on three out of five trading days this week. However, even with Fridays nice gain, the S&P index fell 2.2% for the week and closed at 4357. On the economic front, next week we have the payroll report on Friday following by earnings season commencing towards the end of October. For TSP TIPS, all three equity funds (C/S/I) remain below their 50 day Moving Averages (MAs), but above their 200 day MAs. As long as they remain in this channel, we will probably retain the increased cash position that we moved into with our Mid-Week alert