9/12/12
Stocks rallied early yesterday, and held onto to some decent gains into the close. The Dow gained 69-points on the day.
[TABLE="width: 88%, align: center"]
[TR]
[TD="width: 241"]
[TD="align: center"] Daily TSP Funds Return[TABLE="width: 151"]
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[TD="align: right"] G-Fund:[/TD]
[TD="align: right"] 0.0029%[/TD]
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[TD="align: right"] F-fund:[/TD]
[TD="align: right"] -0.01%[/TD]
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[TD="align: right"] C-fund:[/TD]
[TD="align: right"] 0.31%[/TD]
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[TR]
[TD="align: right"] S-fund:[/TD]
[TD="align: right"] 0.24%[/TD]
[/TR]
[TR]
[TD="align: right"] I-fund:[/TD]
[TD="align: right"] 1.12%[/TD]
[/TR]
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[TD="align: right"] [/TD]
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For a fourth day, the S&P 500 is holding above the prior 2012 high, and just below the resistance of the rising trading channel. This is looking like a bullish flag for now, but it has to hang on.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The large cap tech index Nasdaq 100 saw a third straight down day, but yesterday's low was enough to fill the small open gap caused by last Thursday's rally. This is less of a flag formation than the one the in the S&P 50, and is in a slightly less favorable position. The question is, will the filled gap now act as support?
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The small caps are also forming a bullish flag, but there is a possibility that this is a flat top peak. This is a an ongoing developing story, with the outcome probably being determined by the Fed.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Dow Transportation Index has been the strength of the recent rally having been up for four straight days. Volume has been drying up on each successive day so it could be running out of steam. With oil over $97 dollars again, we could see some pressure build here as it approaches the descending resistance line - which is part of a larger triangle formation that isn't completely show below.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Fed's FOMC meeting begins today so there could be some action in the markets, but tomorrow after 2 PM ET we should get the new policy statement and we'll know more about the QE3 situation. Will they initiate something or will they wait until after the election? The market is eagerly awaiting the answer.
Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
Posted daily at TSP Talk Market Commentary
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