Despite most indices closing on Tuesday within 0.25% of Monday's close, we did see a little more volatility with some Fed statements shaking things up a bit during the trading hours. The Dow ended the day down 32-points.
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[TD="align: center"] Daily TSP Funds Return[TABLE="width: 163"]
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[TD="width: 83, align: right"] G-Fund:[/TD]
[TD="width: 80, align: right"] +0.0232%[/TD]
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[TD="width: 83, align: right"] F-fund:[/TD]
[TD="width: 80, align: right"] -0.08%[/TD]
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[TD="width: 83, align: right"] C-fund:[/TD]
[TD="width: 80, align: right"] -0.16%[/TD]
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[TD="width: 83, align: right"] S-fund:[/TD]
[TD="width: 80, align: right"] +0.21%[/TD]
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[TD="width: 83, align: right"] I-fund:[/TD]
[TD="width: 80, align: right"] +0.07%[/TD]
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There was talk from one Federal Reserve member yesterday that tapering may be as close as December. Stocks, the dollar, gold, bond yields, etc., all jumped around in afternoon trading, but by the close it was a relatively uneventful day.
The S&P 500 (SPY) was relatively flat with little change to the technical picture.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Dow remains at the top of its 7-month trading channel. No new developments here.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The small caps are testing the new descending resistance line, and it looks like there could be a big move coming one way or the other. Either a breakout above resistance, or a drop back to the 50-day EMA.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Transportation Index had a nice day as airline merger mania continued. It is still trading below the recent highs so this could be a consolidation before a breakout, or a topping formations. The indicators might be leaning toward seeing a topping formation.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bonds were mixed yesterday with the longer-term bonds (20+ year) moving higher while the intermediate-term (7 to 10 year) were slightly lower.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Yields had spiked on Friday's jobs report and the market may digest that big move over the next couple of days.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bonds are not looking very good. The question is, will investors take money out of bonds and put it in stocks?
In today's TSP Talk Plus report we go over some intermediate-term indicators and the VIX, which may be telling us something. 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! We'll see you back here tomorrow.
Tom Crowley
Posted daily at TSP Talk Market Commentary
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