Stocks rebounded Tuesday, but it wasn't exactly a "Turnaround Tuesday" as volume wasn't overly exciting, and the gains were only modest in comparison to the Friday / Monday losses. The Dow gained back 72-points of the two-day 476-point decline. Bonds took a break.
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The gains yesterday did little to help the technical picture with S&P 500 (SPY), which is still in a steep downtrend. The bleeding stopped for a day, and the bulls are just hoping the index is finding support as opposed to creating another bear flag.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The annual chart shows some possible hope at the rising support line. The 20-day EMA is about to cross below the 50-day EMA and that is a bearish intermediate-term sign, but it can also be a short-term oversold buying opportunity - regardless of what eventually happens.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The weekly chart shows what could happen if the annual chart (above) falls through that support, as the support line of the long-term trading channel is well below current levels.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq gained nearly 1% yesterday and its too early to say what is happening. It could either be carving out a bottom, or it is just working on a second bear flag.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bonds pulled back slightly but remain in their ascending trading channels and above the 200-day EMAs. They may be due for a little pullback soon with a test of the 200-day EMA.
Chart provided courtesy of www.sentimentrader.com, analysis by TSP Talk
The January jobs report comes out on Friday and consensus estimates are looking for a gain of about 175,000 jobs, and an unemployment rate of 6.7%. We have our monthly jobs report contest going on right now in the forum. More info: http://www.tsptalk.com/mb/jobs-reports-contests/19621-jan-14-jobs-report-contest.html.
Administrative Note: RevShark is offering a free trial to TSP Timing this week. No payment information is needed. You just need to create a login to the Premium Service area, if you don't already have one. Here's more information.
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 back here tomorrow.
Tom Crowley
Posted daily at TSP Talk Market Commentary
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