Stocks traded in a fairly tight range on Friday, coming off some early gains, but rally into the close to end the day mixed, although mostly flat. The Dow slipped 7-points and the market continues to digest recent gains and dissect the new administration's actions and intent.
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With a strong January coming near and end, the month of February is actually one of the more weaker months historical returns-wise. Here's the percentage of ups and downs during the month for each day of the month going back 30 years...
Chart provided courtesy of www.sentimentrader.com
The SPY (S&P 500 / C-fund) broke out last week and there is still a minor gap open created on the day of the breakout. Test of the old resistance line is typical after a breakout, but from there it remains to be seen. Any move below that resistance line would of course be considered a failed breakout.
The weekly chart shows the big move last week and it is testing the longer-term resistance line again, which is of course rising.
The DWCPF (S-fund) filled its small open gap on Friday and is testing the old resistance line now.
The Dow Transportation Index pulled back slightly from the double top, which is typical, so the question is whether it will continue to pullback to test the rising support line. That would not be bad at all and would potentially create a bullish cup and handle formation.
The EFA (I-fund) slipped back into its rising wedge formation after gapping up on Wednesday of last week. The bottom of the gap near 59.75 and the bottom of the wedge, and the old highs near 59.50 are the levels of support to watch.
The AGG (bonds / F-fund) was up slightly on Friday but remains in a bit of a precarious position below key levels of support.
Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the allocations of the 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 back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
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.
