TSP Market Summary: Week of January 20, 2022
Key Takeaways
- S&P 500 fell below December support at 4495, signaling potential further weakness for C Fund
- Both short-term moving averages trending down, indicating bearish momentum for stock funds
- 200-day moving average becomes critical support level to watch for market stability
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date. For current recommendations, subscribe.
| G Fund | F Fund | C Fund | S Fund | I Fund |
|---|---|---|---|---|
| 50% | 0% | 30% | 0% | 20% |
The market opened strong this morning with the S&P 500 gaining over 50 points and making an intraday high of 4602 before noon. However, in the last hour of trading the S&P 500 had given back those gains and retreated another 50 points to close at 4482. From a technical perspective, 1) the S&P 500 finished below its 4495 December low support level, 2) the S&P 500 is now below its 8 and 32 day Moving Averages (MAs) and both of those MAs are sloping downward and 3) the S&P 500 of now 5% below it 3 January record, while the NASDAQ Composite is in the 10% correction territory. The next major support level will be if the S&P 500 can stay above its 200 day Moving Average. As such, we are recommending the following reallocation.