The S&P 500 was up for the second straight week closing Friday at 4415. After last weeks big run up, the markets were pretty subdued the first part of this week. The S&P 500 reminded me of the Little Engine that Could and I think I can as it chugged forward with incremental gains Monday, Tuesday and Wednesday, making it eight straight up days and the longest winning streak since 2021. However, on Thursday that streak was broken as Fed Chair Powell commented about the possibility of more intervention to quell inflation, sparking a move higher in yields, and a market sell off with the S&P 500 down for the week. On Friday the S&P 500 gapped up at the open but sold off over the next 60 minutes to session lows. At 1030 market sentiment turned bullish, the S&P 500 pushed through the psychological 4400 level, and up over 1% for the day. From a technical perspective, last week we talked about resistance, specifically that it would be nice to see is a break in that (downward) trend and have an intraday high which takes out the 17 October high of 4393, which is less than 1% away. Well, we did that on Friday and could possibly see more step ups through the end of this year, with the next resistance level being 1 Septembers intraday high of 4541. For TSP TIPS, that break in resistance was key and as such we are recommending a further equity increase in our investment mix as follows.
The S&P 500 was up for the second straight week closing Friday at 4415. After last weeks big run up, the markets were pretty subdued the first part of this week. The S&P 500 reminded me of the Little Engine that Could and I think I can as it chugged forward with incremental gains Monday, Tuesday and Wednesday, making it eight straight up days and the longest winning streak since 2021. However, on Thursday that streak was broken as Fed Chair Powell commented about the possibility of more intervention to quell inflation, sparking a move higher in yields, and a market sell off with the S&P 500 down for the week. On Friday the S&P 500 gapped up at the open but sold off over the next 60 minutes to session lows. At 1030 market sentiment turned bullish, the S&P 500 pushed through the psychological 4400 level, and up over 1% for the day. From a technical perspective, last week we talked about resistance, specifically that it would be nice to see is a break in that (downward) trend and have an intraday high which takes out the 17 October high of 4393, which is less than 1% away. Well, we did that on Friday and could possibly see more step ups through the end of this year, with the next resistance level being 1 Septembers intraday high of 4541. For TSP TIPS, that break in resistance was key and as such we are recommending a further equity increase in our investment mix as follows.