Some late weakness took the steam out of a what was developing into a nice day and a positive week for the major indices, but I believe the chaos in Kiev and Venezuela had investors wanting to take some profits before the weekend. The Dow ended the day down 30-points, while the TSP stock funds were mixed, and bonds posted a modest gain.
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The SPY (S&P 500) pushed toward new highs again on Friday before backing off. This recent consolidation is certainly well deserved after the big rally off of recent lows, so the question is, will we see a new highs or possible a pullback creating the right shoulder on an inverted head and shoulders pattern?
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The S&P index has room on both the up and down side within its longer-term rising trading channel but the inverted head and shoulder pattern is the focus right now.
The Nasdaq Composite actually made a new high on Friday but could not close there. This has been the leader of the recent rally, and whether it can remain above the January high may dictate what happens to the rest of the major indices.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The small caps of the Russell 2000 have been in a tight rising trading channel, at an angle of incline that may be tough to sustain. It is not yet at it's 2014 highs, but it is testing the late December high and after last week's gains, it is back in positive territory for the year.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Transportation Index is one of the main market leaders and its relative weakness has been a concern for the overall market. If you filled up your gas tanks recently you might know why the Transports may not be overly positive. But the action on Thursday and Friday was a good sign, although there is some descending resistance to deal with as we start the new week. I continue to remain somewhat optimistic about the short-term because I know that open gap wants to get filled. We may not reach new highs here, but that gap is calling.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bonds had a nice day on Friday as the revolution in Kiev may have chased investors into safety before the weekend. These two ETFs continue to dance around their 200-day EMA's and whichever side of that line they negotiate toward, the trend will likely follow.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Read more in today's TSP Talk Plus Report. We post more charts and indicators, plus discuss the Sentiment Survey Results and its 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! We'll see you tomorrow.
Tom Crowley
Posted daily at TSP Talk Market Commentary
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 SPY (S&P 500) pushed toward new highs again on Friday before backing off. This recent consolidation is certainly well deserved after the big rally off of recent lows, so the question is, will we see a new highs or possible a pullback creating the right shoulder on an inverted head and shoulders pattern?
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The S&P index has room on both the up and down side within its longer-term rising trading channel but the inverted head and shoulder pattern is the focus right now.
The Nasdaq Composite actually made a new high on Friday but could not close there. This has been the leader of the recent rally, and whether it can remain above the January high may dictate what happens to the rest of the major indices.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The small caps of the Russell 2000 have been in a tight rising trading channel, at an angle of incline that may be tough to sustain. It is not yet at it's 2014 highs, but it is testing the late December high and after last week's gains, it is back in positive territory for the year.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Transportation Index is one of the main market leaders and its relative weakness has been a concern for the overall market. If you filled up your gas tanks recently you might know why the Transports may not be overly positive. But the action on Thursday and Friday was a good sign, although there is some descending resistance to deal with as we start the new week. I continue to remain somewhat optimistic about the short-term because I know that open gap wants to get filled. We may not reach new highs here, but that gap is calling.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bonds had a nice day on Friday as the revolution in Kiev may have chased investors into safety before the weekend. These two ETFs continue to dance around their 200-day EMA's and whichever side of that line they negotiate toward, the trend will likely follow.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Read more in today's TSP Talk Plus Report. We post more charts and indicators, plus discuss the Sentiment Survey Results and its 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! We'll see you tomorrow.
Tom Crowley
Posted daily at TSP Talk Market Commentary
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.
