The pullback continues as the Dow slipped another 48-points on Tuesday. China bounced back about 4% on Tuesday as it tries to bottom from its severe correction, but Apple's stock has been falling and it's dragging down the Dow, Nasdaq, and S&P 500 in the process since it is such a big part of those indices.
The July Jobs report will be released on Friday. Estimates are looking for a gain of 220,000 jobs, and an unemployment rate of 5.3%. The Jobs Report Contest is open in the forum. Click here for more information.
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The losses were minor in stocks with the S-fund lagging, while bonds pulled back after a recent rally.
The SPY (S&P 500 / C-fund) had an inside day which just means it traded within the range of Monday's trading. It did close slightly lower and that was enough to push it below the 50-day EMA. I'm watching the 206-207 area for some possible support as an inverted head and shoulders pattern may be unfolding here, but there's also a possible "W" double bottom type pattern forming within the right shoulder, as it did in the left shoulder.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Completion Index (S-fund) was down very slightly and did nothing to help its recent descending trend, although it has stopped being the laggard recently.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Transportation Index has been holding up well, but it has not made any big move and instead is creating a little rising flag formation, and they have a tendency to break down like it did in July. I would actually prefer to see the flag slanting downward than upward. My buddy Oscar Carboni calls these "F" flags. They go up until they get... well you see.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
Here's the chart of Apple's stock which for some reason has been free-falling since they posted earnings. The earnings weren't bad but investors seem to want more and the decline is one of the big reasons for the large cap indices to fall, and if Apple falls, a lot of smaller companies who feed the Apple supply chain may be getting affected as well.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE index / I-fund) was up slightly but remained within the large apex. It is above the 50-day EMA, which is good, but this really cannot afford to break to the downside of this apex or we may be calling a top in the EFA.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The dollar was up big on Tuesday and that did not help the I-fund. This is looking like a cup and handle formation, which would be bullish for the dollar since they tend to break to the upside.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (bonds / F-fund) pulled back and seems to be trying to fill the gap it left open on Monday.
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 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! We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
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.
The July Jobs report will be released on Friday. Estimates are looking for a gain of 220,000 jobs, and an unemployment rate of 5.3%. The Jobs Report Contest is open in the forum. Click here for more information.
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[TD="align: center"] Daily TSP Funds Return
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The losses were minor in stocks with the S-fund lagging, while bonds pulled back after a recent rally.
The SPY (S&P 500 / C-fund) had an inside day which just means it traded within the range of Monday's trading. It did close slightly lower and that was enough to push it below the 50-day EMA. I'm watching the 206-207 area for some possible support as an inverted head and shoulders pattern may be unfolding here, but there's also a possible "W" double bottom type pattern forming within the right shoulder, as it did in the left shoulder.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Completion Index (S-fund) was down very slightly and did nothing to help its recent descending trend, although it has stopped being the laggard recently.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Transportation Index has been holding up well, but it has not made any big move and instead is creating a little rising flag formation, and they have a tendency to break down like it did in July. I would actually prefer to see the flag slanting downward than upward. My buddy Oscar Carboni calls these "F" flags. They go up until they get... well you see.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
Here's the chart of Apple's stock which for some reason has been free-falling since they posted earnings. The earnings weren't bad but investors seem to want more and the decline is one of the big reasons for the large cap indices to fall, and if Apple falls, a lot of smaller companies who feed the Apple supply chain may be getting affected as well.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE index / I-fund) was up slightly but remained within the large apex. It is above the 50-day EMA, which is good, but this really cannot afford to break to the downside of this apex or we may be calling a top in the EFA.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The dollar was up big on Tuesday and that did not help the I-fund. This is looking like a cup and handle formation, which would be bullish for the dollar since they tend to break to the upside.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (bonds / F-fund) pulled back and seems to be trying to fill the gap it left open on Monday.
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 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! We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
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.
