Stocks bounced around quite a bit yesterday with talks of interest rate hikes in June, and later FOMC meeting minutes being released, but by the close the indices closed modestly higher. The Dow added 27-points which was well off the morning highs.
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The small caps led with a 0.63% gain and the I-fund paid back a little fair value losing 0.08%. Bonds were up slightly.
Alcoa kicked off the 1st quarter earnings season with a bit of a disappointment. They aren't really a market mover, but earnings season in general can be so the next few weeks should be interesting.
The S&P 500 (C-fund) is carving out a pattern that would have today being quite important. i showed this yesterday where there was a repeat of 4 peaks, and if it is going to continue, today would be the start of the pullback to the prior two lows in March and April. Of course peak when #4 topped, pulled back, and bottomed (in late January / early February), it turned out the be the start of a big rally, so it's possibly only a short-term concern.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Wilshire 4500 (S-fund) had a nice day and is inching closer to new highs.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE Index / I-fund) made a multi-month high yesterday but closed well off the high. There is a bearish rising wedge forming so a trip the the bottom of the wedge is a possibility.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
For the second day in a row the AGG (Bonds / F-fund) has tested the bottom of its rising trading channel. It's looking a little toppy, but as long as it stays within the channel it should be considered bullish for bonds. But that could end any day.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
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Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
Posted daily at TSP Talk Market Commentary
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