After two consecutive up weeks for the S&P 500, it gave back those gains as it closed at 3934, just one point above the low of those last two weeks. The markets lost over one percent for the second Monday in a row as a hotter-than-expected November ISM Services report fueled concerns that the Fed will continue hiking interest rates. And then on Tuesday increased fears of recession made it two days in a row of over one percent losses. Wednesday the markets were flat, but the 10 year Treasury yield continued its downward move off its 21 October YTD high, hitting a new low of 3.42%. On Thursday we broke a string of five consecutive down days, but Friday was unusual. The markets were flat overnight but before the open, Novembers Producer Price Index report showed higher-than-expected wholesale prices, which caused an immediate drop of forty S&P 500 points. The markets clawed their way back through the day, and within 60 minutes of the close had recouped those forty points. But over those last 60 minutes, the markets sold off again going into the weeks close. Technically, the S&P 500 closed below its 200 day Moving Average (MA) resistance level on Monday and had an intraday day low below its Two Bar support level of 3933 on Tuesday. However, it was able to maintain as positive Performance Ranking (PR). But lets look ahead to next week which brings us big news. Before the markets open on Tuesday we have the Consumer Price Index (CPI) report, so lets go back to the last months report on 10 November. We got a good CPI number and the markets were off and running posting a 5.54% daily gain. Then on Wednesday afternoon we have Chairman Powell giving us the Fed decision on interest rates. As such, these back-to-back events should result in more of those over one percent daily moves, which now stands at a YTD record setting 115. For TSP TIPS, the I, F and C funds all have positive Performance Rankings while the S fund remains in negative territory. As such, we are recommending the following new investment mix.
After two consecutive up weeks for the S&P 500, it gave back those gains as it closed at 3934, just one point above the low of those last two weeks. The markets lost over one percent for the second Monday in a row as a hotter-than-expected November ISM Services report fueled concerns that the Fed will continue hiking interest rates. And then on Tuesday increased fears of recession made it two days in a row of over one percent losses. Wednesday the markets were flat, but the 10 year Treasury yield continued its downward move off its 21 October YTD high, hitting a new low of 3.42%. On Thursday we broke a string of five consecutive down days, but Friday was unusual. The markets were flat overnight but before the open, Novembers Producer Price Index report showed higher-than-expected wholesale prices, which caused an immediate drop of forty S&P 500 points. The markets clawed their way back through the day, and within 60 minutes of the close had recouped those forty points. But over those last 60 minutes, the markets sold off again going into the weeks close. Technically, the S&P 500 closed below its 200 day Moving Average (MA) resistance level on Monday and had an intraday day low below its Two Bar support level of 3933 on Tuesday. However, it was able to maintain as positive Performance Ranking (PR). But lets look ahead to next week which brings us big news. Before the markets open on Tuesday we have the Consumer Price Index (CPI) report, so lets go back to the last months report on 10 November. We got a good CPI number and the markets were off and running posting a 5.54% daily gain. Then on Wednesday afternoon we have Chairman Powell giving us the Fed decision on interest rates. As such, these back-to-back events should result in more of those over one percent daily moves, which now stands at a YTD record setting 115. For TSP TIPS, the I, F and C funds all have positive Performance Rankings while the S fund remains in negative territory. As such, we are recommending the following new investment mix.