Stocks were flat to lower on Thursday as the Dow and S&P ended the day about where they did on Wednesday, but the broader indices did not fare as well with the Nasdaq, small caps, and particularly the Dow Transportation Index, all closing with losses.
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The S&P 500 (C-Fund) opened higher but started to lose ground quickly and moved sharply into negative territory before bottoming about noon ET and closing down less than a point. The 50-day EMA held once last week, and on Thursday it didn't quite get that far before we saw some buying kick in.
I was looking for a reason why stocks were so weak on Wednesday and early on Thursday and I noticed a small open gap was formed during Tuesday's strong open. Wednesday's losses nearly filled that gap, and Thursday's lows did complete the task. Technically, that's a good sign since we want to see gaps get filled quickly, but whether that means the downside is over remains to be seen.
The DWCPF (S-fund) lost almost a half of a percent but it also found some footing after successfully retesting the 50-day EMA. These are key levels and it looks like it wants to hold, but investors are a little jumpy right now and any kind of bad news could trigger some panic.
The Dow Transportation Index has been the leader and it led on the downside last year, then led the rebound in January, which started a month earlier than the S&P 500. Now it is breaking down a little here having fallen below all of the major moving averages, and now making a new lower low and closing at its lowest point since early March. This is a little troubling. I wish we could say that it is the rise of oil prices, which would seem logical, but that hasn't always been an issue for the Trannies.
The EFA ((I-fund) rallied sharply early but fell back down and is down stuck between the 50 and 200-day EMA's.
The AGG (Bonds / F-fund) was down slightly and looks like it wants to test the breakout area again. I saw an indicator that showed bonds' sentiment at an extreme bullish level, which may mean they are due for a pullback.
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. Have a great weekend!
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.
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The price of oil has rallied back from its recent stumble and that may be why the Dow and S&P are outperforming, since they include the major oil companies.
The S&P 500 (C-Fund) opened higher but started to lose ground quickly and moved sharply into negative territory before bottoming about noon ET and closing down less than a point. The 50-day EMA held once last week, and on Thursday it didn't quite get that far before we saw some buying kick in.
I was looking for a reason why stocks were so weak on Wednesday and early on Thursday and I noticed a small open gap was formed during Tuesday's strong open. Wednesday's losses nearly filled that gap, and Thursday's lows did complete the task. Technically, that's a good sign since we want to see gaps get filled quickly, but whether that means the downside is over remains to be seen.
The DWCPF (S-fund) lost almost a half of a percent but it also found some footing after successfully retesting the 50-day EMA. These are key levels and it looks like it wants to hold, but investors are a little jumpy right now and any kind of bad news could trigger some panic.
The Dow Transportation Index has been the leader and it led on the downside last year, then led the rebound in January, which started a month earlier than the S&P 500. Now it is breaking down a little here having fallen below all of the major moving averages, and now making a new lower low and closing at its lowest point since early March. This is a little troubling. I wish we could say that it is the rise of oil prices, which would seem logical, but that hasn't always been an issue for the Trannies.
The EFA ((I-fund) rallied sharply early but fell back down and is down stuck between the 50 and 200-day EMA's.
The AGG (Bonds / F-fund) was down slightly and looks like it wants to test the breakout area again. I saw an indicator that showed bonds' sentiment at an extreme bullish level, which may mean they are due for a pullback.
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. Have a great weekend!
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.
