Stocks were mixed yesterday as the Dow gained 20-points, while Monday's big winners - the Nasdaq and Russell 2000 - gave back some of their weekly gains. Small caps in particular were hit and gave back a big chunk of Monday's gains.
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The I-funded lagged on Monday so it played a little catch up on Tuesday, but the recent surge in the dollar has held it back recently. Just when you think the dollar had broken down, it decides to shoot up and fill some open gaps (red). I guess that shouldn't be a surprise, but now there's an open gap on the downside (blue) that will want some attention.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The SPY (S&P 500 / C-fund) closed off its highs but posted a small gain and remains above the inverted head and shoulders neckline breakout. That's two closes above the neckline and that's all we got in early April before the next pullback started so the rest of the week will be a good test of the strength of the breakout.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq Composite lost some ground yesterday and fell back below the 50-day EMA, but it remains above the descending breakout resistance line so it's a bit of a mixed message. The Nasdaq 100 (QQQ) closed off the highs and may have produced a negative reversal day, but it remains above some key support.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Russell 2000 lost over 1% yesterday and can't seem to get back above the 50-day EMA. There is a small gap open down by 110 that may draw attention. The best case scenario here would be a couple of slow days of sideways to slightly downward action that digests the recent gains, but not enough to go back below the resistance, and that would create a bull flag.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bonds had a nice day and the IEF actually closed at its highest price since last summer, and the TLT (left) is looking to bottom after its recent pullback.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
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Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
Posted daily at TSP Talk Market Commentary
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