It was a bullish up over 1% week for the S&P 500 as it closed at 5,346 on Friday. Going into the week we were expecting a flat market until Friday when the Payroll and Unemployment numbers would come in, and we had that flat line on Monday on Tuesday. However, on Wednesday the Tech Bull took over and drove the S&P 500 to a daily gain of over 1%, and a new record closing high at 5,354. On Thursday we took a breather, but before Fridays open the May payroll number came in at 272,000, above the 190,000 estimate and well above Aprils 175,000 gain. However, even with those job gains, the unemployment rate ticked higher to 4%. Signaling a growing economy, this led to a volatile Friday as yields increased and the S&P 500 sold off in premarket trading. The S&P 500 then gapped down at the open, but clawed back into positive territory by 1015. It then set a new intraday record high of 5,375 by 1315, fell off in the next hour, and again clawed back to just 9 points shy of another record closing high. On the technical side, the S&P 500 showed a return to bullishness this week as it did have a higher intraweek high and higher intraweek low than last week. For next week we get the inflation numbers with CPI and PPI before the open on Wednesday and Thursday. On Wednesday afternoon well also get the Fed interest rate decision. Finally, on Friday we get the UMICH Consumer Sentiment Number. For TSP TIPS the C fund made a new record high on Wednesday, and the I fund made a new record high on Thursday. While both have identical Composite Scores, the C funds Performance Ranking has improved over the past week. On the other hand, the S fund has closed lower for the last three weeks. As such, we recommend the following new investment mix. Finally, on Tuesday 18 June at 1700 ET we will be having another Zoom meeting (link to follow) covering the ProFunds fund family (profunds.com) and ProFunds TIPS.
It was a bullish up over 1% week for the S&P 500 as it closed at 5,346 on Friday. Going into the week we were expecting a flat market until Friday when the Payroll and Unemployment numbers would come in, and we had that flat line on Monday on Tuesday. However, on Wednesday the Tech Bull took over and drove the S&P 500 to a daily gain of over 1%, and a new record closing high at 5,354. On Thursday we took a breather, but before Fridays open the May payroll number came in at 272,000, above the 190,000 estimate and well above Aprils 175,000 gain. However, even with those job gains, the unemployment rate ticked higher to 4%. Signaling a growing economy, this led to a volatile Friday as yields increased and the S&P 500 sold off in premarket trading. The S&P 500 then gapped down at the open, but clawed back into positive territory by 1015. It then set a new intraday record high of 5,375 by 1315, fell off in the next hour, and again clawed back to just 9 points shy of another record closing high. On the technical side, the S&P 500 showed a return to bullishness this week as it did have a higher intraweek high and higher intraweek low than last week. For next week we get the inflation numbers with CPI and PPI before the open on Wednesday and Thursday. On Wednesday afternoon well also get the Fed interest rate decision. Finally, on Friday we get the UMICH Consumer Sentiment Number. For TSP TIPS the C fund made a new record high on Wednesday, and the I fund made a new record high on Thursday. While both have identical Composite Scores, the C funds Performance Ranking has improved over the past week. On the other hand, the S fund has closed lower for the last three weeks. As such, we recommend the following new investment mix. Finally, on Tuesday 18 June at 1700 ET we will be having another Zoom meeting (link to follow) covering the ProFunds fund family (profunds.com) and ProFunds TIPS.