So, how do like bear market rallies? We've had consecutive rallies of +314, +223, and now +257-points, and in total the Dow is 951-points above last Thursday's low. As we have been talking about, the cash on the sidelines is fueling the rally as investors try to catch up. How long it lasts is still unknown. The bear market conditions have not gone away so there's no all's clear sign yet, but you've got to love those bear market rallies.
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Oil was back on the bullish side and in sync with stocks, mainly because Iran agreed with other producers to freeze production levels.
But once again it is up against the resistance of its falling trading channel, as you will see in the chart below.
The SPY (S&P 500 Index / C-Fund) gapped up for a second straight day yesterday and the rally pushed it all the way to the next level of resistance, the target we talked about yesterday. The next resistance areas are shown on the chart but keep in mind that the last 3-day rally that we saw was in mid-December, and the bear market was just getting started. Only the Christmas rally got in the way.
The Dow Transportation Index broke through some major resistance and that's an interesting development for the leading index. The top of the bear flag and the 50-day EMA were broken impressively, although the Trannies did close off the highs as it peaked in morning trading.
The Dow Completion Index (small caps / S-Fund) broke above the 20-day EMA and the descending trend line, but remains below its flag, an area that could act as resistance, particularly in a bear market.
The EFA (EAFE Index / I-fund) was up 1.72% yesterday and the chart of the day from the I-fund countries is the London FTSE. It got above the 50-day EMA but it ran into the top of a very strong descending trading channel. This is quite a juncture for the index and one of the leaders of the I-fund.
The price of oil rallied about 8% yesterday but right into that pesky overhead resistance of the descending trading channel.
The AGG (bonds / F-fund) was down slightly but reversed and closed well off the lows and back into the trading channel after finding support at the 20-day EMA.
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.
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Oil was back on the bullish side and in sync with stocks, mainly because Iran agreed with other producers to freeze production levels.
But once again it is up against the resistance of its falling trading channel, as you will see in the chart below.
The Dow Transportation Index broke through some major resistance and that's an interesting development for the leading index. The top of the bear flag and the 50-day EMA were broken impressively, although the Trannies did close off the highs as it peaked in morning trading.
The Dow Completion Index (small caps / S-Fund) broke above the 20-day EMA and the descending trend line, but remains below its flag, an area that could act as resistance, particularly in a bear market.
The EFA (EAFE Index / I-fund) was up 1.72% yesterday and the chart of the day from the I-fund countries is the London FTSE. It got above the 50-day EMA but it ran into the top of a very strong descending trading channel. This is quite a juncture for the index and one of the leaders of the I-fund.
The price of oil rallied about 8% yesterday but right into that pesky overhead resistance of the descending trading channel.
The AGG (bonds / F-fund) was down slightly but reversed and closed well off the lows and back into the trading channel after finding support at the 20-day EMA.
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.
