7/03/12
After a 2.5% to 3 % gain in the major indices on Friday, you'd expect some digestion and that's what we got, and a little more. The Dow saw a small 8-point loss but the TSP fund indices all did quite well.
[TABLE="align: center"]
[TR]
[TD]
[TD="align: center"] Daily TSP Funds Return
[TABLE="align: center"]
[TR]
[TD="align: right"] G-Fund:
[/TD]
[TD] +0.01%
[/TD]
[/TR]
[TR]
[TD="align: right"] F-fund:
[/TD]
[TD] +0.34%
[/TD]
[/TR]
[TR]
[TD="align: right"] C-fund:
[/TD]
[TD] +0.25%
[/TD]
[/TR]
[TR]
[TD="align: right"] S-fund:
[/TD]
[TD] +0.82%
[/TD]
[/TR]
[TR]
[TD="align: right"] I-fund:
[/TD]
[TD] +0.61%
[/TD]
[/TR]
[TR]
[TD="colspan: 2, align: right"]
[/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
The S&P 500 held above the levels we talked about yesterday, and it you combine that with the position of all of the moving averages - with the 20-day EMA getting ready to overtake the 50-day EMA - this is really starting to look promising.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
I am still a little concerned about the large open gap created on Friday on the Nasdaq so it won't surprise me to see at least an intraday dip below some key support to fill that gap. It's one of those things where you want to get it out of the way early so we don't have to keep thinking about that possibility.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The small caps o the Russell 2000 have come back strongly but is now testing some overhead resistance. From a technical standpoint this looks good for the intermediate term as we have a nice healthy uptrend here, but there's a good chance we could see this back off from the upper end of this rising trading channel. The moving averages look great as they are all on the rise again.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The NYSE overbought / oversold indicator is back on the overbought side. This is a short-term concern but the two overbought readings so close together is a good sign for the strength of the market.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
This has nothing to do with the TSP but this nearly 4-year high in the Housing Index is another good sign for the overall economy.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Four year consolidations tend to precede some large long term moves so it's nice to see this break to the upside.
Thanks for reading! Enjoy your Independence Day holiday! We'll see you on Thursday.
Tom Crowley
Posted daily at www.tsptalk.com/comments.html
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