As we suspected, stocks opened lower on Monday after the futures showed investor concern over the situation in Iraq. We saw a little battle between the bulls and bears, and by the close it was basically a flat with a slight edge to the bulls. The Dow gained 5-points and the broader indices saw minor gains as well.
The I-fund lagged but should make up some of yesterday's loss today since U.S. stocks rallied after the overseas markets closed.
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There's a two-day FOMC meeting today and Wednesday so there could be some surprises tomorrow.
The SPY (S&P 500 / C-fund) was able to hold above the old rising resistance line (blue) again, which is what an old resistance line is supposed to do. We will need to see more upside or the SPY runs the risk of creating a bear flag. So far, so good, but...
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The small caps may have broken above its bull flag - at least it looks that way so far. Again, more upside is needed before Monday's rally can be confirmed as bullish breakout.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The dollar has held up well after that nasty negative outside reversal day several days ago, but it wasn't able to move above that day's high, and now it looks to have broken down from a short-term rising trading channel. That large open gap down by 21.25 is still looming and may be a downside target for the UUP. Filling the gap should help the I-fund.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
Bonds continue to hold above their 50-day EMA's after breaking below their rising support lines. This is a mixed bag so I don't have an opinion on the direction of the next major move yet.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
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Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.html
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