Happy New Year, everyone!
That was one way to end a year. Stocks opened higher and they were holding onto some gains into the early afternoon before the rug was pulled out from underneath them and there was a rush for the exit. The Dow ended the day down 160-points.
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Small caps and the I-fund were down but not quite as bad as the S&P 500 / C-fund. Bonds were up.
Here are the final numbers for December and 2014...
The SPY (S&P 500 / C-fund) fell back below the neckline of its inverted head and shoulders pattern - something we were concerned about. Now the open gap comes back into play, and the possibility of a test of the head comes into play.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Wilshire 4500 (S-fund) just barely broke below its recent resistance turned support line. This isn't quite a failed breakout yet, but it wouldn't take much to make it one.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE Index / I-fund) is acting like it's in a bear market, and since it is in a bear market, we should continue to expect bearish results here.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
Today is trading day number +1 on the New Years Day Performance Chart, and historically it has been average at best. The second day is actually one of the strongest positive biases of the year... although 4 of the last 6 years it has been negative. After day #2, the positive holiday bias is behind us.
Chart provided courtesy of www.sentimentrader.com, analysis by TSP Talk
The AGG (Bonds / F-fund) remains in the cup and handle formation. These usually break to the upside but until we get a breakout, there is always the chance it will pullback to the support line again.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the Sentiment Survey Results and the allocations of the TSP and ETF Systems. For more information on how to gain access and a list of the benefits of being a subscriber, please go to: www.tsptalk.com/plus.php
Thanks for reading! Have a great weekend!
Tom Crowley
Posted daily at TSP Talk Market Commentary
The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.
