In a week of light economic news, the S&P 500 posted a third consecutive winning week closing Friday at 5,222. Monday was the best day of the week as the S&P 500 built on last Fridays gain of over 1%, making it two in a row. The middle of the week was dominated by higher for longer and wait and see FedSpeak, and the S&P 500 was flat with Wednesdays close being only 3 one hundreds of a point from Tuesdays close. On Thursday the S&P closed above the 5,200 level for the first time since 9 April, exactly one month ago. On Friday the S&P 500 gapped up at the open and climbed to an intraweek high of 5,239 by 1000. Then the UMICH preliminary May consumer sentiment index came in at 67.4, far below the estimate of 76 and marking its lowest reading in six months. Driving the slide was consumers seeing inflation in 12 months at 3.5%, up from 3.1% last month and 2.9% two months ago. The S&P 500 sold off but remained above the 5,200 level the rest of the day. From a technical perspective were seeing some increased bullishness across the board. The Dow Jones Industrial Average (DJIA) had its best week of 2024 with eight consecutive winning sessions. Also, the S&P 500 made it back-to-back weeks of a higher intraweek high, and higher intraweek low. On Friday morning, the S&P 500 gave us a 2 weekly bar reversal buy signal when it crossed above 8 Aprils intraweek high 5,224.81. Coming up we have the inflation numbers on Tuesday and Wednesday, and talk of new record highs for the S&P 500 and DJIA as both are within 1%. For TSP TIPS, the C, S, and I funds have all seen three consecutive weeks of gains. Using the underlying indices for the C, S and I funds, all three have seen back-to-back weeks of a higher intraweek high, and higher intraweek low, and both the C and I funds gave us 2 weekly bar reversal buy signals. Finally, the I fund made new 52 week and all-time record highs on Friday. And, using Fridays closing prices and projecting them though next Friday, the I fund will be the only one of the three to see its 20 day Moving Average to cross above its 50 day MA. As such, we recommend the following new investment mix. On another note, mark your calendars on Tuesday, 21 May at 5 PM EDT well be having a zoom call (link to follow) on our Trending Investment Portfolio Strategies (TIPS) and ProFunds TIPS, which uses the ProFunds family of funds (https://www.profunds.com). Lastly, we wish everyone a very Happy Mothers Day!!
In a week of light economic news, the S&P 500 posted a third consecutive winning week closing Friday at 5,222. Monday was the best day of the week as the S&P 500 built on last Fridays gain of over 1%, making it two in a row. The middle of the week was dominated by higher for longer and wait and see FedSpeak, and the S&P 500 was flat with Wednesdays close being only 3 one hundreds of a point from Tuesdays close. On Thursday the S&P closed above the 5,200 level for the first time since 9 April, exactly one month ago. On Friday the S&P 500 gapped up at the open and climbed to an intraweek high of 5,239 by 1000. Then the UMICH preliminary May consumer sentiment index came in at 67.4, far below the estimate of 76 and marking its lowest reading in six months. Driving the slide was consumers seeing inflation in 12 months at 3.5%, up from 3.1% last month and 2.9% two months ago. The S&P 500 sold off but remained above the 5,200 level the rest of the day. From a technical perspective were seeing some increased bullishness across the board. The Dow Jones Industrial Average (DJIA) had its best week of 2024 with eight consecutive winning sessions. Also, the S&P 500 made it back-to-back weeks of a higher intraweek high, and higher intraweek low. On Friday morning, the S&P 500 gave us a 2 weekly bar reversal buy signal when it crossed above 8 Aprils intraweek high 5,224.81. Coming up we have the inflation numbers on Tuesday and Wednesday, and talk of new record highs for the S&P 500 and DJIA as both are within 1%. For TSP TIPS, the C, S, and I funds have all seen three consecutive weeks of gains. Using the underlying indices for the C, S and I funds, all three have seen back-to-back weeks of a higher intraweek high, and higher intraweek low, and both the C and I funds gave us 2 weekly bar reversal buy signals. Finally, the I fund made new 52 week and all-time record highs on Friday. And, using Fridays closing prices and projecting them though next Friday, the I fund will be the only one of the three to see its 20 day Moving Average to cross above its 50 day MA. As such, we recommend the following new investment mix. On another note, mark your calendars on Tuesday, 21 May at 5 PM EDT well be having a zoom call (link to follow) on our Trending Investment Portfolio Strategies (TIPS) and ProFunds TIPS, which uses the ProFunds family of funds (https://www.profunds.com). Lastly, we wish everyone a very Happy Mothers Day!!