It was a tale of two halves, and a little overtime, for the market yesterday as we saw a strong rally taking several indices into new high territory during the first half of the trading day, and that was followed by an afternoon that gave back much of those early gains. The overtime pushed the after hours S&P 500 futures into negative territory just after the closing bell following the political fall-out from the Paul Manafort trial and the Michael Cohen guilty plea.
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By the close the Dow had gained 64-points, but as I mentioned, the Dow, S&P, and Nasdaq gains were erased in the futures market after the close. It could be a quick, sell first, ask questions later, reaction after hours, but we'll see how investors react during today's trading session. But as of now, about 6:30 PM ET on Tuesday evening, the S&P 500 futures are down about 10-points.
As you'll see below, many of the charts hit new intraday highs but the late selling pulled them back creating possible failed breakouts, and double top formations.
So politics or not, the charts look to be in a position to see some profit taking, and the news may only give the market an excuse to do so, when it may have been heading that way anyway.
The S&P 500 / C-fund popped up into new high territory early yesterday but you can see the negative reversal on the chart and that sets up a possible failed breakout.
The full 2018 chart shows the January high and yesterday's action testing that high, but of course there was a negative reversal so it closed below that level so we may have seen a set up for a double top pullback.
The small caps (S-fund) had broken out of its summer consolidation cup and handle type formation, but it also ran into some longer term resistance that could cause a little profit taking at the top of this range.
The Dow Transportation Index has been on fire lately but the story is the same here as well. We saw new intraday all-time highs but it reversed down and may be setting up for some profit taking and a double top pullback.
The EAFE (I-fund) had another good day and it was another day that the dollar slipped helping the I-fund rally.
The dollar fell, and it fell a little more than I would have expected since the open gap was there to fill. It did get filled but it kept falling and it is now back in the middle of that rising channel.
The AGG (bonds) dipped a bit and it fell back below that longer-term resistance line, so both stock and bonds are at an interesting point, flirting with breakouts but finding resistance.
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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By the close the Dow had gained 64-points, but as I mentioned, the Dow, S&P, and Nasdaq gains were erased in the futures market after the close. It could be a quick, sell first, ask questions later, reaction after hours, but we'll see how investors react during today's trading session. But as of now, about 6:30 PM ET on Tuesday evening, the S&P 500 futures are down about 10-points.
As you'll see below, many of the charts hit new intraday highs but the late selling pulled them back creating possible failed breakouts, and double top formations.
So politics or not, the charts look to be in a position to see some profit taking, and the news may only give the market an excuse to do so, when it may have been heading that way anyway.
The S&P 500 / C-fund popped up into new high territory early yesterday but you can see the negative reversal on the chart and that sets up a possible failed breakout.
The full 2018 chart shows the January high and yesterday's action testing that high, but of course there was a negative reversal so it closed below that level so we may have seen a set up for a double top pullback.
The small caps (S-fund) had broken out of its summer consolidation cup and handle type formation, but it also ran into some longer term resistance that could cause a little profit taking at the top of this range.
The Dow Transportation Index has been on fire lately but the story is the same here as well. We saw new intraday all-time highs but it reversed down and may be setting up for some profit taking and a double top pullback.
The EAFE (I-fund) had another good day and it was another day that the dollar slipped helping the I-fund rally.
The dollar fell, and it fell a little more than I would have expected since the open gap was there to fill. It did get filled but it kept falling and it is now back in the middle of that rising channel.
The AGG (bonds) dipped a bit and it fell back below that longer-term resistance line, so both stock and bonds are at an interesting point, flirting with breakouts but finding resistance.
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.
