In a holiday shortened week the S&P 500 made a new Year To Date (YTD) closing high of 4282 on Friday. After Memorial Day Monday, the S&P 500 closed lower than it opened on Tuesday, and it was the same on Wednesday with the S&P 500 making an intraweek low of 4166. After that low, the debt ceiling bill passed in the House and Senate on Wednesday and Thursday and the markets turned around. Before Fridays open, May nonfarm payrolls grew more than expected, rising to 339,000 and marking the 29th straight month of positive job growth. But Fridays data also showed year over year average hourly earnings rising less than expected, while the unemployment rate was higher than anticipated at 3.7%. These Goldilocks reports resulted with a gap to the upside open and a bullish intraday run to 4290, almost 3% higher than that intraweek low. From a technical perspective the S&P 500 has a streak of three weeks higher while the Nasdaq 100 notched its sixth straight week higher, a length not seen since 2020. Also, that Bollinger Band Index (Bollinger Band width/Bollinger Band midpoint) that we discussed in our 29 April update now stands at a pretty tame 42 reading, so we would not consider the market overbought. For next week its kind of muted on the economic front, but we may see some Fear Of Missing Out (FOMO) buying. For TSP TIPS, the C fund now sits at the top of the Composite Score and Performance Ranking leaderboards, making new YTD highs on four of the last five days, and making a new 52 week high on Friday. As mentioned last week, the S fund has continued its resurgence with its 20 day Moving Average (MA) crossing above the 50 MA on Wednesday, and on track to cross above the 200 MA on Monday. As such, we are recommending the following new investment mix.
In a holiday shortened week the S&P 500 made a new Year To Date (YTD) closing high of 4282 on Friday. After Memorial Day Monday, the S&P 500 closed lower than it opened on Tuesday, and it was the same on Wednesday with the S&P 500 making an intraweek low of 4166. After that low, the debt ceiling bill passed in the House and Senate on Wednesday and Thursday and the markets turned around. Before Fridays open, May nonfarm payrolls grew more than expected, rising to 339,000 and marking the 29th straight month of positive job growth. But Fridays data also showed year over year average hourly earnings rising less than expected, while the unemployment rate was higher than anticipated at 3.7%. These Goldilocks reports resulted with a gap to the upside open and a bullish intraday run to 4290, almost 3% higher than that intraweek low. From a technical perspective the S&P 500 has a streak of three weeks higher while the Nasdaq 100 notched its sixth straight week higher, a length not seen since 2020. Also, that Bollinger Band Index (Bollinger Band width/Bollinger Band midpoint) that we discussed in our 29 April update now stands at a pretty tame 42 reading, so we would not consider the market overbought. For next week its kind of muted on the economic front, but we may see some Fear Of Missing Out (FOMO) buying. For TSP TIPS, the C fund now sits at the top of the Composite Score and Performance Ranking leaderboards, making new YTD highs on four of the last five days, and making a new 52 week high on Friday. As mentioned last week, the S fund has continued its resurgence with its 20 day Moving Average (MA) crossing above the 50 MA on Wednesday, and on track to cross above the 200 MA on Monday. As such, we are recommending the following new investment mix.