Stocks pulled back modestly yesterday, from Tuesday's surprise post-shutdown rally. The action was not too bad however, as the indices finish off their lows as the Dow, down 59-points had been down about 150-points in early trading.
[TR]
[TD="width: 310"]
[TD="align: center"] Daily TSP Funds Return[TABLE="width: 166"]
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[TD="align: right"] G-Fund:[/TD]
[TD="align: right"] +0.0056%[/TD]
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[TD="align: right"] F-fund:[/TD]
[TD="align: right"] +0.11%[/TD]
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[TD="align: right"] C-fund:[/TD]
[TD="align: right"] -0.05%[/TD]
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[TD="align: right"] S-fund:[/TD]
[TD="align: right"] -0.25%[/TD]
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[TD="align: right"] I-fund:[/TD]
[TD="align: right"] -0.26%[/TD]
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[TABLE="width: 69%, align: center"]
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[TD="align: right"] [/TD]
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The talk on Wall Street now is about the debt ceiling deadline in a couple of weeks, which will have more of an impact of stocks and the economy. The closer that gets without a deal, the more investor's nerves will show, but right now the charts are holding up pretty well.
After an early morning 1.0% loss, the S&P 500 closed down just 0.07% on the day and managed to close above the 20-day EMA for a second straight day. As long as it hold above the 50-day EMA, the bulls feel they are in charge.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq lost 0.08% and remained right near the 52-week high. There is some potential overhead resistance, but it is rising. Looks very nice.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The dollar continues its weak ways as the UUP made new lows yesterday. All of the gains the dollar had made when there was talk of tapering the Quantitative Easing this summer, are gone and then some. This means the I-fund will continue to be a good option if you want to be in the stock funds.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The long-term bonds (20+ years) are still in a bull flag while the 7 to 10-year bonds continue to rise after filling the large open gap last week. But both are up against the August high now and seem to be finding some resistance.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
They've had a good run and I would say they might be due for a break, but they have actually consolidated for several days already and could be looking to push above resistance - as a bull flag normally does.
I'm not 100% certain, but I believe because of the shutdown, the September jobs report will not be reported this Friday as originally scheduled.
The futures are down as I write this, moving lower after the discussion between the White House and leaders of congress broke down without any progress being made.
In today's TSP Talk Plus report we'll look at other charts including the short and intermediate-term indicators. 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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