Stocks lost ground again on Tuesday although for a second straight day the buyers are stepping up and taking the indices well off their worst intraday levels. The Dow ended the day down 163-points, while the price of oil rebounded slightly but remains near the 2008-2009 lows.
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The I-fund lagged and bonds were down.
The SPY (S&P 500 / C-fund) opened sharply lower , then hit the 50-day EMA and stabilized but still lost 0.67%. The 50-day EMA has held three times in the last 4 trading days after the 200-day EMA held in November, as it should in a bull market. Unfortunately, many of the other broader market indices are not holding up as well including the small caps, the Transports, and the NYSE, to name a few.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Completion Index (small caps / S-fund) broke down from the rising support line yesterday. It also had the best intraday recovery, but the damage had already been done and that old support is now on a resistance watch list.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Transportation Index fell 2.8% yesterday moving all the way down to the lows made in September and approaching the August lows. Not what you'd want to see from the market leader.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The High Yield Corporate Bond Fund sank yesterday, filling the gap from October, but opening a new one near 82. It is now testing the lows it made in October. This is a red flag but I'm more concerned with the Transports, although this adds to the problems.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE Index / F-Fund) gapped lower and is again testing the top of the October gap, which was tested and held in November. After a couple of lower highs, it is trying to avoid a lower low.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (Bonds / F-Fund) was flat after rallying up to the old support line again, this time filling the open gap at 108.60. It closed just below the 50-day EMA. Overall this looks a little bearish for bonds but if stocks don't stabilize, we could see them rally.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
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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The I-fund lagged and bonds were down.
The SPY (S&P 500 / C-fund) opened sharply lower , then hit the 50-day EMA and stabilized but still lost 0.67%. The 50-day EMA has held three times in the last 4 trading days after the 200-day EMA held in November, as it should in a bull market. Unfortunately, many of the other broader market indices are not holding up as well including the small caps, the Transports, and the NYSE, to name a few.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Completion Index (small caps / S-fund) broke down from the rising support line yesterday. It also had the best intraday recovery, but the damage had already been done and that old support is now on a resistance watch list.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Transportation Index fell 2.8% yesterday moving all the way down to the lows made in September and approaching the August lows. Not what you'd want to see from the market leader.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The High Yield Corporate Bond Fund sank yesterday, filling the gap from October, but opening a new one near 82. It is now testing the lows it made in October. This is a red flag but I'm more concerned with the Transports, although this adds to the problems.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE Index / F-Fund) gapped lower and is again testing the top of the October gap, which was tested and held in November. After a couple of lower highs, it is trying to avoid a lower low.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (Bonds / F-Fund) was flat after rallying up to the old support line again, this time filling the open gap at 108.60. It closed just below the 50-day EMA. Overall this looks a little bearish for bonds but if stocks don't stabilize, we could see them rally.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
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.
