Stocks were mixed on Thursday with the Dow gaining a modest 56-points while small caps ended the day with a small loss. It may be the calm before earnings season gets rolling, although the 0.28% loss in bonds was a bit of a shake-up.
[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 I-fund posted a small gain despite a rally in the dollar and the large cap C-fund led the way with a 0.45% gain.
I was traveling all day on Thursday so I had to to make this a little brief.
The S&P 500 (C-fund) may have broken that bearish pattern we have been watching - at least Thursday's action would have us believe that. Peak #4 in January led to a sharp decline and that was what I though could be in store should the pattern continue, but instead the S&P 500 mustered up enough strength to make a higher high over that second peak #4. It's not out of the woods yet, but any more upside action today and I think we will be able to put the comparison aside.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Wilshire 4500 (S-fund) was down slightly on Thursday but posted a pretty good positive reversal day.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE Index / I-fund) was up slightly and that was a show of strength considering the dollar also had a very good day.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The dollar shot up over 1% and broke the short-term downtrend on Thursday, and most likely put an end the the pullback that started in March and held up at the 50-day EMA on Monday.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (Bonds / F-fund) broke below its rising trading channel and is about to test its 20-day EMA. This is not a deal breaker for bonds yet, but it is certainly a but of a warning sign.
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 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! Have a great weekend!
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.
