The S&P 500 had a tumultuous week, snapping a three week losing streak and closing Friday at 4405. Monday kicked off with the 10-year Treasury yield hitting its highest level since 2007 and the markets selling off in the morning. However, they clawed their way back and in the last hour had regained that psychological 4400 level. On Tuesday weakness in the retail space weighed on the market with Dicks Sporting Goods falling 24% in its worst daily performance ever. On Wednesday the latest 30-year fixed mortgage rate report showed a jump from 7.16% to 7.31%, the highest level in 23 years and pushing mortgage demand to its lowest level in 28 years. However, that did not dampen the bullish mood as the S&P 500 had a daily gain of over 1% in anticipation of Nvidia (NVDA) earnings after the closing bell. That report came in bullish, NVDA made a new all-time high, but then sold off in step with the S&P 500, as it erased the previous day's gains and then some. Fridays big event was Fed Chair Powells annual report at the Jackson Hole Economic Symposium. While he acknowledged inflation had come down from its peak, he reiterated that prices remain "too high," leaving the door open for the central bank to continue tightening. To illustrate the S&P 500 volatility associated with his 30 minute speech, he took the stage at 1000 with the S&P 500 at 4394. By 1003 it climbed to 4404, by 1009 it dropped to 4384, at 1017 it climbed to an intraday high of 4416, but by 1030 it had dropped again to 4381, for a total point movement of nearly 100. After this tumultuous morning, the markets caught their breath and climbed back to 4405 for an up week. From a technical perspective, the S&P 500s 20 day Moving Average (MA) crossed below it's 50 day MA on Friday, signaling continued weakness. For reference, the S&P 500s 20 MA crossed above the 50 MA (buy signal) on 13 April at 4146. The big news for next week will be Fridays employment report, followed by inflation numbers and the Fed meeting on 19/20 September. For TSP TIPS, the C fund mirrored the S&P 500s 50 > 20 MA cross movement, which was also mirrored by the S fund on Friday. And to give fair coverage, the I fund had that 50 > 20 MA cross on Monday. As such, we will take advantage of a third new investment mix in August.
The S&P 500 had a tumultuous week, snapping a three week losing streak and closing Friday at 4405. Monday kicked off with the 10-year Treasury yield hitting its highest level since 2007 and the markets selling off in the morning. However, they clawed their way back and in the last hour had regained that psychological 4400 level. On Tuesday weakness in the retail space weighed on the market with Dicks Sporting Goods falling 24% in its worst daily performance ever. On Wednesday the latest 30-year fixed mortgage rate report showed a jump from 7.16% to 7.31%, the highest level in 23 years and pushing mortgage demand to its lowest level in 28 years. However, that did not dampen the bullish mood as the S&P 500 had a daily gain of over 1% in anticipation of Nvidia (NVDA) earnings after the closing bell. That report came in bullish, NVDA made a new all-time high, but then sold off in step with the S&P 500, as it erased the previous day's gains and then some. Fridays big event was Fed Chair Powells annual report at the Jackson Hole Economic Symposium. While he acknowledged inflation had come down from its peak, he reiterated that prices remain "too high," leaving the door open for the central bank to continue tightening. To illustrate the S&P 500 volatility associated with his 30 minute speech, he took the stage at 1000 with the S&P 500 at 4394. By 1003 it climbed to 4404, by 1009 it dropped to 4384, at 1017 it climbed to an intraday high of 4416, but by 1030 it had dropped again to 4381, for a total point movement of nearly 100. After this tumultuous morning, the markets caught their breath and climbed back to 4405 for an up week. From a technical perspective, the S&P 500s 20 day Moving Average (MA) crossed below it's 50 day MA on Friday, signaling continued weakness. For reference, the S&P 500s 20 MA crossed above the 50 MA (buy signal) on 13 April at 4146. The big news for next week will be Fridays employment report, followed by inflation numbers and the Fed meeting on 19/20 September. For TSP TIPS, the C fund mirrored the S&P 500s 50 > 20 MA cross movement, which was also mirrored by the S fund on Friday. And to give fair coverage, the I fund had that 50 > 20 MA cross on Monday. As such, we will take advantage of a third new investment mix in August.