Stocks had a solid day of gains on Thursday although they peaked about midday and gave back a lot of their morning gains by the close. The Dow gained 55-points, but that was 120-points off the highs, and we saw similar declines in the other indices. The bulls were able to hold off the bears from completely erasing the gains, although the small caps lagged again and did give back virtually all of it's early gains. Volume was quite light so it seemed many eyes were on the Supreme Court nominee Kavanaugh hearing instead of the market.
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The day started with a roaring rally that attempted to grab back the losses from Wednesday's post FOMC meeting sell-off, and in the case of the tech heavy Nasdaq, all of those losses were recaptured until the afternoon slide.
Despite the Nasdaq closing positive by a solid 0.65%, there were only 12 more stocks up on the index, then were down. It was the large tech stocks that led, with Apple having a big day gaining 2%, which accounted for much of the Dow's 55-point gain.
That said, we saw the key support levels hold again on the charts and the bulls have been buying every pullback to these levels. It is tough for the bears to have much credibility at this point, although they were able to push the indies to, or near, the bottom of their trading channel.
The S&P 500 / C-fund rallied early on Thursday and held onto a modest gain, but it did close well off the highs for a negative reversal day. There were two similar reversal days in late June (marked below) and you can see that we didn't see much downside afterward, but the index did go lower at some point on the following trading day both times, even if they closed up on the day. Support is holding firm so the bulls are still doing their jobs.
The small caps (S-fund) had a modest gain going on Thursday but succumbed to the afternoon selling and closed basically flat on the day. Again, support is holding, but just barely in this case. There's not much room for error here.
The Dow Transpiration Index was up slightly as it tries to stabilize and find support at the 50-day EMA after breaking down from its rising support last week.
The EAFE Index was down and closed below the 200-day EMA again, so this ping pong match above and below the EMA persists.
The dollar rallied sharply and surprisingly moved right back above that old support line that broke down last week.
The AGG (bonds) rallied again as the post interest rate hike relief rally continued. The bond bears may be getting ready to try to push this lower again as the AGG makes it ways up to the moving averages.
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. Have a great weekend!
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.
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The day started with a roaring rally that attempted to grab back the losses from Wednesday's post FOMC meeting sell-off, and in the case of the tech heavy Nasdaq, all of those losses were recaptured until the afternoon slide.
Despite the Nasdaq closing positive by a solid 0.65%, there were only 12 more stocks up on the index, then were down. It was the large tech stocks that led, with Apple having a big day gaining 2%, which accounted for much of the Dow's 55-point gain.
That said, we saw the key support levels hold again on the charts and the bulls have been buying every pullback to these levels. It is tough for the bears to have much credibility at this point, although they were able to push the indies to, or near, the bottom of their trading channel.
The S&P 500 / C-fund rallied early on Thursday and held onto a modest gain, but it did close well off the highs for a negative reversal day. There were two similar reversal days in late June (marked below) and you can see that we didn't see much downside afterward, but the index did go lower at some point on the following trading day both times, even if they closed up on the day. Support is holding firm so the bulls are still doing their jobs.
The small caps (S-fund) had a modest gain going on Thursday but succumbed to the afternoon selling and closed basically flat on the day. Again, support is holding, but just barely in this case. There's not much room for error here.
The Dow Transpiration Index was up slightly as it tries to stabilize and find support at the 50-day EMA after breaking down from its rising support last week.
The EAFE Index was down and closed below the 200-day EMA again, so this ping pong match above and below the EMA persists.
The dollar rallied sharply and surprisingly moved right back above that old support line that broke down last week.
The AGG (bonds) rallied again as the post interest rate hike relief rally continued. The bond bears may be getting ready to try to push this lower again as the AGG makes it ways up to the moving averages.
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. Have a great weekend!
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.
