The S&P 500 lost nearly 2% this week closing at 6,602. On Monday, again valuation and volatility seemed to put stress on the markets but the S&P 500 was able to rally slightly going into the close thereby avoiding one of the those down greater than 1% daily moves. On Tuesday key tech names again weighed on stocks as the Technology Select Sector SPDR Fund (XLK) closed 1.6% lower, while the S&P 500 notched its fourth consecutive losing day, its longest slide since August. Wednesdays standout was Alphabet, rising about 3% and hitting a new all-time high around optimism about its new generation of AI, Gemini 3 (it is sweet). The S&P 500 snapped that four-day slide and right afterward we got Nvidias earnings report which beat Wall Streets earnings and revenue expectations. This carried into Thursday as the S&P 500 gapped up at the open, but then started a major downward slide about 60 minutes later as investors expectations grew tepid about the Federal Reserves upcoming interest rate decision. We also had pressure as the unemployment rate clicked up to 4.4%, the highest since October 2021. The S&P 500 did have a greater than 1% daily loss as it closed below the 6,600 level for the first time since 10 October. On Friday the S&P 500 bounced back on news that New York Federal Reserve President John Williams suggested the central bank could cut interest rates yet again this year, and the S&P 500 regained that 6,600 level, closing just two points above that. As mentioned above, the last time the S&P 500 closed below 6,600 was 10 October when it closed at 6,552, and it only remained there one day, similar to Thursdays one day dip. So what happened with the S&P 500 in the six weeks after 10 October. It was pretty much a pyramid with three weeks up and the S&P 500 hitting a record high of 6,890 on 28 October. Fast forward three weeks to 20 November when it closed at 6,538, below 6,600 for one day. That said, it sure would be nice to see the S&P 500 break above that 28 October high and cross that 7,000 threshold to close out the year. For next week earnings season is slowing and well get the monthly PPI on Tuesday. On Thursday the markets will be closed, followed by a shortened session on Friday. For TSP TIPS all three equity funds (C/S/I) have decreased in both Composite Scores (CS) and Performance Rankings (PR) this week, with the S fund moving into negative PR territory. Also, all three now have weekly trends of lower highs and lower lows, and both the C and S funds closed Thursday below their 10 October support levels. As such we are recommending the following new investment mixes. Finally, Happy Thanksgiving to all and hope you enjoy it with friends and family!!
The S&P 500 lost nearly 2% this week closing at 6,602. On Monday, again valuation and volatility seemed to put stress on the markets but the S&P 500 was able to rally slightly going into the close thereby avoiding one of the those down greater than 1% daily moves. On Tuesday key tech names again weighed on stocks as the Technology Select Sector SPDR Fund (XLK) closed 1.6% lower, while the S&P 500 notched its fourth consecutive losing day, its longest slide since August. Wednesdays standout was Alphabet, rising about 3% and hitting a new all-time high around optimism about its new generation of AI, Gemini 3 (it is sweet). The S&P 500 snapped that four-day slide and right afterward we got Nvidias earnings report which beat Wall Streets earnings and revenue expectations. This carried into Thursday as the S&P 500 gapped up at the open, but then started a major downward slide about 60 minutes later as investors expectations grew tepid about the Federal Reserves upcoming interest rate decision. We also had pressure as the unemployment rate clicked up to 4.4%, the highest since October 2021. The S&P 500 did have a greater than 1% daily loss as it closed below the 6,600 level for the first time since 10 October. On Friday the S&P 500 bounced back on news that New York Federal Reserve President John Williams suggested the central bank could cut interest rates yet again this year, and the S&P 500 regained that 6,600 level, closing just two points above that. As mentioned above, the last time the S&P 500 closed below 6,600 was 10 October when it closed at 6,552, and it only remained there one day, similar to Thursdays one day dip. So what happened with the S&P 500 in the six weeks after 10 October. It was pretty much a pyramid with three weeks up and the S&P 500 hitting a record high of 6,890 on 28 October. Fast forward three weeks to 20 November when it closed at 6,538, below 6,600 for one day. That said, it sure would be nice to see the S&P 500 break above that 28 October high and cross that 7,000 threshold to close out the year. For next week earnings season is slowing and well get the monthly PPI on Tuesday. On Thursday the markets will be closed, followed by a shortened session on Friday. For TSP TIPS all three equity funds (C/S/I) have decreased in both Composite Scores (CS) and Performance Rankings (PR) this week, with the S fund moving into negative PR territory. Also, all three now have weekly trends of lower highs and lower lows, and both the C and S funds closed Thursday below their 10 October support levels. As such we are recommending the following new investment mixes. Finally, Happy Thanksgiving to all and hope you enjoy it with friends and family!!