08/26/13
Stocks moved modestly higher on Friday after a weak open, and that combination created some positive reversal days on the charts. The Dow gains 47-points and bond yields moved down helping the F-fund to a nice gain.
[TABLE="width: 88%, align: center"]
[TR]
[TD="width: 305"]
[TD="align: center"] Daily TSP Funds Return[TABLE="width: 152"]
[TR]
[TD="align: right"] G-Fund:[/TD]
[TD="align: right"] +0.0056%[/TD]
[/TR]
[TR]
[TD="align: right"] F-fund:[/TD]
[TD="align: right"] +0.41%[/TD]
[/TR]
[TR]
[TD="align: right"] C-fund:[/TD]
[TD="align: right"] +0.41%[/TD]
[/TR]
[TR]
[TD="align: right"] S-fund:[/TD]
[TD="align: right"] +0.28%[/TD]
[/TR]
[TR]
[TD="align: right"] I-fund:[/TD]
[TD="align: right"] +0.55%[/TD]
[/TR]
[/TABLE]
[TABLE="width: 69%, align: center"]
[TR]
[TD="align: right"] [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
The S&P 500 seems to be acting like every other pullback this year, so should we be concerned with the overhead resistance? The short-term descending resistance line is near the top of the open gap and together they could cause a problem.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The clue may come from the Nasdaq, which has been outperforming of late. The QQQ filled the overhead open gap on Friday so if we see resistance break here, along with a push to new highs, it will be a good sign for the S&P 500 and the C-fund. The gap down below from July is still open and is certainly still in the picture.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Transportation Index had a big day last Thursday breaking above the short-term descending trading channel (red), and while it might be a stretch, there could be some resistance here (black) should the Transports try to form a head and shoulders pattern here. That big rally on Thursday was on very light volume so my nature is to be skeptical.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Yields finally had a bad day on Friday as the 30-year Treasury moved down below 3.8% while the 10-year fell back to 2.8%.
This helped the price of bonds and the F-fund, which was up 0.41%, and that is a pretty good day for the bond fund.
The TSP Talk Plus Premium Service officially starts today, and in today's report we'll go over some of the oscillating indicators, take a look at some of the other index charts and bonds, and talk about the recent Sentiment Survey System signals.
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 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.
