After three straight down weeks for the S&P 500, it reversed course to the upside and closed at 4045 on Friday. Dominated by technical analysis news, the markets hit several significant levels. In our last update, it was mentioned that the S&P 500 has been two steps forward in January and one step backward in February, and is now right about the mid-point between 2023s high and low. Starting this week, the 10 year Treasury yield continued its climb though the 4% level on Wednesday while the S&P 500 continued its descent to that 200 day Moving Average (MA) support level of 3,940. The S&P 500 did pierce its 200 MA level on an intraday basis on Wednesday and Thursday but closed above it both days. At Fridays open the 10 year Treasury yield fell back below that 4% level and the markets turned bullish with the S&P 500 up 1.6% for its best daily gain since 6 January. And now weve reclaimed almost half of that distance between last weeks close and the 2023 high. Were also seeing a nice bullish trend with a series of higher highs and higher lows. The 2 February high was higher than the 13 December high and the 1 March low was higher than the 28 December low. And lets not forget about next week with Fed Chair Powells testimony and Februarys Unemployment number. For TSP TIPS, the S and I funds both regained that price above 20 MA status this week, which is above their 50 MA, which is above their 200 MA (bullish), and both have a positive Performance Ranking (PR). The C fund has yet to cross above its 20 MA and is still in negative PR territory so we are recommending the following investment mix.
After three straight down weeks for the S&P 500, it reversed course to the upside and closed at 4045 on Friday. Dominated by technical analysis news, the markets hit several significant levels. In our last update, it was mentioned that the S&P 500 has been two steps forward in January and one step backward in February, and is now right about the mid-point between 2023s high and low. Starting this week, the 10 year Treasury yield continued its climb though the 4% level on Wednesday while the S&P 500 continued its descent to that 200 day Moving Average (MA) support level of 3,940. The S&P 500 did pierce its 200 MA level on an intraday basis on Wednesday and Thursday but closed above it both days. At Fridays open the 10 year Treasury yield fell back below that 4% level and the markets turned bullish with the S&P 500 up 1.6% for its best daily gain since 6 January. And now weve reclaimed almost half of that distance between last weeks close and the 2023 high. Were also seeing a nice bullish trend with a series of higher highs and higher lows. The 2 February high was higher than the 13 December high and the 1 March low was higher than the 28 December low. And lets not forget about next week with Fed Chair Powells testimony and Februarys Unemployment number. For TSP TIPS, the S and I funds both regained that price above 20 MA status this week, which is above their 50 MA, which is above their 200 MA (bullish), and both have a positive Performance Ranking (PR). The C fund has yet to cross above its 20 MA and is still in negative PR territory so we are recommending the following investment mix.