Stocks were mostly flat but mostly mixed on Wednesday as the Dow lost 36-points, and the TSP funds were up or down slightly.
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The boring, tight trading range day will give me an excuse to keep today's commentary brief since I am out of town for a few days working on something else, and to me, working on a laptop with a slower internet connection is like trying to write with your off hand. I'm just not comfortable.
The SPY (S&P 500) was flat yesterday and remains above the key breakout level. I believe the open gap will be filled sooner rather than later, and the only question I have is whether any pullback will fall below the old breakout point, like it has 3 of the last 4 major breakouts, or if we will see the new highs hold like we saw last October?
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The small caps were flat as well and after the huge day on Tuesday, a day or two of rest is certainly reasonable. The question is how much will the overhead resistance affect the index? This short-term chart shows the issue...
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
And this weekly longer-term chart shows some double trouble for the small caps, although all of the resistance is rising so it's a positive moving target.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bonds were slightly higher yesterday although the F-fund was basically flat. Not much to report here as bond traders are likely bracing themselves for the February jobs report.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
And speaking of the jobs report, the February jobs report will be reported on Friday and estimates are looking for somewhere near +163,000 jobs and an unemployment rate of 6.6%. We have our monthly jobs report contest going on right now in the forum. More info: Guess the Jobs Report Contest Feb'14.
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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