From our 2/09/09 daily market commentary.
We also have another bullish PMO crossover, but it is too early to call since this could still be part of an oversold bounce.
You may have heard the Nasdaq and the Dow Transportation Index being referred to as the market leaders. Technology is always a key to our economy, and the transportation stocks are a great indication of the state of our economy as they deliver the products.
The Nasdaq has been acting stronger than the S&P 500 as it is now trading above the 20 and 50-day moving averages. It looks like this week we will see a test of the upper end of the wedge it too has been forming. The PMO indicator is also flashing a crossover buy signal.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Dow Transportation Index has been lagging the rest of the market, but so far has successfully tested the lows made in November. The 50-day moving average and the declining trend line now stand in its way and like the Nasdaq, we should know soon enough how this will play out.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
We have seen a good start but until these two charts prove that they can take out the technical resistance, we may want to remain cautious in our TSP funds. The economic news is still bleak and we have the possibility of a "sell the news" reaction to any finalization of the stimulus package.
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We also have another bullish PMO crossover, but it is too early to call since this could still be part of an oversold bounce.
You may have heard the Nasdaq and the Dow Transportation Index being referred to as the market leaders. Technology is always a key to our economy, and the transportation stocks are a great indication of the state of our economy as they deliver the products.
The Nasdaq has been acting stronger than the S&P 500 as it is now trading above the 20 and 50-day moving averages. It looks like this week we will see a test of the upper end of the wedge it too has been forming. The PMO indicator is also flashing a crossover buy signal.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Dow Transportation Index has been lagging the rest of the market, but so far has successfully tested the lows made in November. The 50-day moving average and the declining trend line now stand in its way and like the Nasdaq, we should know soon enough how this will play out.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
We have seen a good start but until these two charts prove that they can take out the technical resistance, we may want to remain cautious in our TSP funds. The economic news is still bleak and we have the possibility of a "sell the news" reaction to any finalization of the stimulus package.
More
