6/26/12
Stocks fell yesterday, apparently on more concerns out of Europe. Later, Moody's downgraded 28 Spanish banks but that's probably not much of a surprise. The Dow lost 138-points on the day.
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[TD="align: center"] Daily TSP Funds Return
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[TD="align: right"] G-Fund:
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[TD] +0.012%
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[TD="align: right"] F-fund:
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[TD] +0.26%
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[TD="align: right"] C-fund:
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[TD] - 1.58%
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[TD="align: right"] S-fund:
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[TD] - 1.71%
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[TD="align: right"] I-fund:
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[TD] - 1.24%
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The S&P 500 fell 1.6% and dropped back below the 200-day EMA, which may be an area of support, but we're still looking for a possible test of the middle of the head of the inverted head and shoulders pattern.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
That test could be in the neighborhood of 1300, which also happens to be where the 200-day simple moving average (SMA) and the bottom of the rising trading channel might converge, so that could prove to be some solid support.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq broke down from its rising wedge yesterday - something the S&P 500 did last Thursday. The 200-day EMA held on the first test yesterday.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The NYSE overbought / oversold indicator is back in neutral territory as the recent sell-off took it off of its recent overbought levels.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Supreme Court's ruling over the Arizona immigration law didn't seem to have much of an impact on the market, and I wouldn't have expected it to. The market was down before the news was released, and it stayed down after. Now the healthcare ruling may be a different story and it is due out sometime between today (Tuesday) and Thursday of this week.
The technical picture is a little muddled as we have had weak action with overhead resistance, but there is strong support just below. We have the inverted head and shoulders pattern, which is usually bullish, but the indices have broken down from the rising wedge patterns, which is bearish. It seems like a remedy for more choppy action in the near term.
Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.html
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