In this holiday shortened week the S&P 500 snapped a two-week winning streak, closing at 4457. This week was light on economic news, but on Wednesday we did have the August ISM Services PMI come in at 54.5, pointing to the strongest growth in the services sector in six months. That said, the major theme this week was the price of oil, and whether that price would cross above $100/barrel. So lets shift to the technical side. While we did have a down week, lets look at this from a different weekly low perspective. Four weeks ago the SP 500 weekly low was 4335. Three weeks ago the weekly low was 4356 (higher). Two weeks ago the weekly low was 4414 (higher), and this week it was 4430 (higher). It should be noted that each weeks low was higher than the previous one. While this might be a glass half full perspective, the trend is positive and the Bollinger Band Index, which measures volatility, sits at a tame 45 rating. So what do we have next week? The start of the week should be slow, but before the open on Wednesday and Thursday we get the Consumer and Producer inflation numbers respectively, and things should heat up. And then the following week we have the Fed meeting and their decision on interest rates. For TSP TIPS our investment mix is still valid and therefore we recommend no changes.
In this holiday shortened week the S&P 500 snapped a two-week winning streak, closing at 4457. This week was light on economic news, but on Wednesday we did have the August ISM Services PMI come in at 54.5, pointing to the strongest growth in the services sector in six months. That said, the major theme this week was the price of oil, and whether that price would cross above $100/barrel. So lets shift to the technical side. While we did have a down week, lets look at this from a different weekly low perspective. Four weeks ago the SP 500 weekly low was 4335. Three weeks ago the weekly low was 4356 (higher). Two weeks ago the weekly low was 4414 (higher), and this week it was 4430 (higher). It should be noted that each weeks low was higher than the previous one. While this might be a glass half full perspective, the trend is positive and the Bollinger Band Index, which measures volatility, sits at a tame 45 rating. So what do we have next week? The start of the week should be slow, but before the open on Wednesday and Thursday we get the Consumer and Producer inflation numbers respectively, and things should heat up. And then the following week we have the Fed meeting and their decision on interest rates. For TSP TIPS our investment mix is still valid and therefore we recommend no changes.