It was a down holiday shortened week for the markets as the S&P 500 closed at 4392 on Thursday. Inflation news put the markets on edge. On Tuesday, Marchs consumer price index increased 8.5% from a year ago, making it the fastest annual gain since December 1981. Plowing on, Wednesdays producer price index increased 11.2% from a year ago. Which brought us to Thursday with the 10-year U.S. Treasury yield rising to a multiyear high of over 2.8%. From a technical perspective, the S&P500 also broke below a key support level this week (For those of you that like charts, pull up a 1 year weekly chart of the S&P 500 at Yahoo Finance). If you look at the last two positive (or green) weeks of March 20 and 27, youll see that the low of those two weeks was 4424. As noted above, the S&P 500 closed this week at 4392, below that support level. Additionally, this downward trend has caused the S&P 500 to close below its 50 day Moving Average, which is below its 200 day Moving Average. While no one can predict the future, this may result in the S&P 500 testing its 4114 support level, which was also the 2022 low. For TSP TIPS, we sent out a Mid-Week Alert when the C fund first broke through the afore mentioned support level. However, its Performance Ranking (PR) is still positive so well keep a watch on that for future reallocations. Lastly, in decreasing order, the I, S, and F funds all have negative Performance Rankings with the F fund hitting a new 52 week low on Friday.
It was a down holiday shortened week for the markets as the S&P 500 closed at 4392 on Thursday. Inflation news put the markets on edge. On Tuesday, Marchs consumer price index increased 8.5% from a year ago, making it the fastest annual gain since December 1981. Plowing on, Wednesdays producer price index increased 11.2% from a year ago. Which brought us to Thursday with the 10-year U.S. Treasury yield rising to a multiyear high of over 2.8%. From a technical perspective, the S&P500 also broke below a key support level this week (For those of you that like charts, pull up a 1 year weekly chart of the S&P 500 at Yahoo Finance). If you look at the last two positive (or green) weeks of March 20 and 27, youll see that the low of those two weeks was 4424. As noted above, the S&P 500 closed this week at 4392, below that support level. Additionally, this downward trend has caused the S&P 500 to close below its 50 day Moving Average, which is below its 200 day Moving Average. While no one can predict the future, this may result in the S&P 500 testing its 4114 support level, which was also the 2022 low. For TSP TIPS, we sent out a Mid-Week Alert when the C fund first broke through the afore mentioned support level. However, its Performance Ranking (PR) is still positive so well keep a watch on that for future reallocations. Lastly, in decreasing order, the I, S, and F funds all have negative Performance Rankings with the F fund hitting a new 52 week low on Friday.