Thrift Savings Plan

[frenchee]

C Fund Setting Up for Consolidation Next Week

As I write this, C Fund is up 7.5% since its October low.

The weight of the evidence suggests a consolidation starting next week. C Fund is overbought, nearing a fundamental 61.8% Fib retracement level from the October 27 low, and coming up on a significant intermediate-term downtrend line that started on July 27.

The linked chart shows the C Fund testing its mid-October high and nearing an upside breakout. Odds for an upside breakout are enhanced by the relative strength of large tech stocks in the Nasdaq 100, which pull the rest of the market higher. The critical question is, "Will the market break out next week or consolidate?" My forecast is consolidation before a breakout.

C Fund, Daily Chart