After the worst week for the S&P 500 since 2020, this short week the S&P 500 staged a bear market rally and closed the week at 3911, essentially where it was two Fridays ago. While recession fears continued to loom as well as slowing global growth, Federal Reserve Chair Jerome Powell stated that the central bank is committed to bringing down inflation. This inflation concern was reflected in Fridays University of Michigan consumer sentiment number. With 47% of consumers blaming inflation for eroding their living standards, the consumer sentiment number hit a record low reading of 50 in June. Although this weeks rally broke a streak of three down weeks, the S&P 500 still looks weak from a technical perspective as it remains well below its 50 day Moving Average (MA) with a negative Performance Ranking (PR). That said, we may be setting up for a range bound market between our most recent high of 4177 and last weeks low of 3636 until earnings season commences. For TSP TIPS, the C fund follows its S&P 500 benchmark with regard to 50 day MA and negative PR. The same also holds true for the S, I and F funds. As such, we are recommending no changes to our current allocation.
After the worst week for the S&P 500 since 2020, this short week the S&P 500 staged a bear market rally and closed the week at 3911, essentially where it was two Fridays ago. While recession fears continued to loom as well as slowing global growth, Federal Reserve Chair Jerome Powell stated that the central bank is committed to bringing down inflation. This inflation concern was reflected in Fridays University of Michigan consumer sentiment number. With 47% of consumers blaming inflation for eroding their living standards, the consumer sentiment number hit a record low reading of 50 in June. Although this weeks rally broke a streak of three down weeks, the S&P 500 still looks weak from a technical perspective as it remains well below its 50 day Moving Average (MA) with a negative Performance Ranking (PR). That said, we may be setting up for a range bound market between our most recent high of 4177 and last weeks low of 3636 until earnings season commences. For TSP TIPS, the C fund follows its S&P 500 benchmark with regard to 50 day MA and negative PR. The same also holds true for the S, I and F funds. As such, we are recommending no changes to our current allocation.