Stocks were down on Tuesday and while the charts are breaking down before our eyes, the fairly strong close yesterday gave us a mixed bag for the very short-term. Down 288-points by mid-day, an afternoon rally took the Dow off the lows and it ended the day down "just" 180-points.
After the close the downside resumed in the futures market so whether yesterday's positive reversal is in fact positive for the market today, remains to be seen.
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The dollar was up giving the I-fund some extra trouble, and bonds were up.
The SPY (S&P 500 / C-fund) opened down and the decent close had it trying to reach up to the gap it opened at 195.00. This is clearly a broken chart after the breakdowns from a bear flag and rising wedge formations. But we could always see a rally back up to the bottom of the flag since snap-back rally can be pretty strong. Other than relief rallies, the trend is down and buying would be fighting that trend, but if and when we test the August lows, the chances of a bottom become greater.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
Once again stocks seemed to follow the price of oil as crude was down sharply early yesterday, but closed strongly.
The Dow Completion Index (small caps / S-Fund) also broke down measurable, but there is an open gap above.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Transportation Index... well, you see.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE Index / I-fund) came close to testing the August lows after opening sharply lower filling one gap (blue) but opening another.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The German DAX continues its journey to the August lows and it had it's lowest close since January. The issues with Volkswagen was certainly a major contributor, but as we have talked about before, it seems like bad news follows bad market activity.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (bonds / F-fund) was up as investors run to bonds when stocks are in trouble.
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.
After the close the downside resumed in the futures market so whether yesterday's positive reversal is in fact positive for the market today, remains to be seen.
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The dollar was up giving the I-fund some extra trouble, and bonds were up.
The SPY (S&P 500 / C-fund) opened down and the decent close had it trying to reach up to the gap it opened at 195.00. This is clearly a broken chart after the breakdowns from a bear flag and rising wedge formations. But we could always see a rally back up to the bottom of the flag since snap-back rally can be pretty strong. Other than relief rallies, the trend is down and buying would be fighting that trend, but if and when we test the August lows, the chances of a bottom become greater.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
Once again stocks seemed to follow the price of oil as crude was down sharply early yesterday, but closed strongly.
The Dow Completion Index (small caps / S-Fund) also broke down measurable, but there is an open gap above.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Transportation Index... well, you see.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE Index / I-fund) came close to testing the August lows after opening sharply lower filling one gap (blue) but opening another.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The German DAX continues its journey to the August lows and it had it's lowest close since January. The issues with Volkswagen was certainly a major contributor, but as we have talked about before, it seems like bad news follows bad market activity.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (bonds / F-fund) was up as investors run to bonds when stocks are in trouble.
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.
