Stocks opened sharply lower on Wednesday after a freefall on Tuesday night in the index futures that led to a moderate capitulation in the morning. Buyers stepped up to take the indices well off their lows with small caps closing at their daily highs, and the I-fund closing with a gain, but for the large cap U.S. stocks, the Dow lost another 78-points and the S&P 500 shed 0.35%. Not great but well off the morning sell-off lows.
[TABLE="align: center"]
[TR]
[TD="align: center"]
[TD="align: center"][/TD]
[TD="align: center"] Daily TSP Funds Return
[TR]
[TD="align: right"] [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
The stock market and the TSP are closed on Friday but the Jobs Report is still scheduled to be released as usual. The estimates are looking for a gain of about 250,000 jobs and an unemployment rate of 5.5%.
The SPY (S&P 500 / C-fund) finished filling the open gap, then tested, held, and rebounded from the recent support line creating a positive reversal day. But the short-term trend is down and the bulls will have to break that descending resistance line before stocks get an all's clear.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Wilshire 4500 (S-fund) was down 0.23% but it closed near the highs shedding some severe early losses.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Russell 2000 shows just how well the small caps are holding up. The open gap was filled and a big positive reversal day was creating setting up a fairly bullish situation for Thursday, but we are heading into a 3-day weekend for stocks, so you never know how investors will react.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE Index / I-fund) had a big day and tried to close the overhead open gap but there is still work to do. So far, the uptrend has remained intact despite the short-term weakness.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The historical performance surrounding Easter weekend is quite positive with just one day showing a negative average return from 4 days prior to Good Friday, until 4-days after, and that would be next Monday.
Chart provided courtesy of www.sentimentrader.com, analysis by TSP Talk
The AGG (Bonds / F-fund) rallied sharply early on a bit of a capitulation-like sell-off in the stock market. A gap was opened and the bear flag broke to the upside, and the old support line may now act as resistance, but it is rising.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Jobs Report Contest is open in the forum. Click here for more information.
Per www.tsp.gov: Some financial markets will be closed Friday, April 3rd. Consequently, the Thrift Savings Plan will not be updating share prices in any of the TSP funds for that day. Transactions that would have been processed Friday night (April 3rd) will be processed Monday night (April 6th), at Monday's closing share prices.
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! Because the stock market and the TSP are closed on Friday, there won't be any updated commentary. Have a great weekend and Happy Easter!
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.
