Stocks opened flat to slightly lower on Tuesday, but some slow and buying sent the indices to modest gains and the Dow ended the day with a gain of 76-points.
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The I-fund led the way with a gain of 0.81%, and bonds were up 0.15%.
Another vote in Greece today and Janet Yellen is getting set to speak so there is a lot up in the air right now. The action in the market is telling us that investors are not concerned, but are they right?
The SPY (S&P500 / C-fund) rallied for a 3rd straight day. It has closed above the 50-day EMA for a second straight day. I'm looking for 3 to 5 closes above it before feeling comfortable, and we know that open gap is so tempting for a chart.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Completion Index (S-fund) filled the small open gap left open in late June, and now the only recent open gap is near 1105. Should that get filled it would wipe out the gains of the last two days. Will the bulls allow that or will those who have been left behind jump on any dip?
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE index / I-fund) is back above the 50-day EMA and it is trying to fill the large overhead (blue) gap. There is resistance at 66.00 and there are two glaring open gaps below (red). It has closed above the 200-day EMA for a 3rd straight day, which is a good sign.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (bonds / F-fund) was up slightly but still remains in bad shape. It could try to fill the overhead gap but it will have to get back above the descending resistance line to do so. Filling the gap would also place it at the 200-day EMA resistance area.
Chart provided courtesy of www.sentimentrader.com, analysis by TSP Talk
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Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
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