09/20/11
Stocks opened sharply lower yesterday and while the we did see a triple digit loss in the Dow, it did close well off of the lows as buyers stepped up late in the afternoon.
For the TSP, the C-fund was down 0.98% yesterday, the S-fund lost 1.36%, the I-fund fell 2.46%, and the F-fund (bonds) rallied 0.46%.
The S&P 500 pulled back from the 50-day EMA resistance, but the pullback found support at the 20-day EMA. This is a battle that we will just have to keep an eye on.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
There is a FOMC (Fed) meeting this week (today and tomorrow) and we may have to wait until it concludes before we find out which way this battle resolves - just a guess.
I have posted this before, but I will post it again: In a bear market, getting back above the 50-day EMA is a tough job for the S&P 500.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The NYSE overbought/oversold indicator is now basically flat after being modestly overbought last week. Sentiment is still slightly bearish, but last week's rally took the surveys off of their extreme levels.
That's about it today. As mentioned, the Fed's FOMC meeting is going on for the next couple of days and investors may be tentative to do much of anything. That is, unless we get some news out of Europe, which is really what has been calling the shots lately.
Update: Since I first posted this, Standard & Poor's downgraded Italy's credit rating so the European woes continue.
Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
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