It was an interesting day on Wall Street yesterday as the Dow soared 129-points and the S&P 500 gained about a half of a percent, but all of the leaders were down. The Nasdaq, Dow Transportation Index, and small caps, were all down on the day.
[TABLE="width: 80%, align: center"]
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[TD="width: 300"]
[TD="align: center"] Daily TSP Funds Return[TABLE="width: 163"]
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[TD="width: 83, align: right"] G-Fund:[/TD]
[TD="width: 80, align: right"] +0.0063%[/TD]
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[TD="width: 83, align: right"] F-fund:[/TD]
[TD="width: 80, align: right"] +0.09%[/TD]
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[TD="width: 83, align: right"] C-fund:[/TD]
[TD="width: 80, align: right"] +0.48%[/TD]
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[TD="width: 83, align: right"] S-fund:[/TD]
[TD="width: 80, align: right"] -0.35%[/TD]
[/TR]
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[TD="width: 83, align: right"] I-fund:[/TD]
[TD="width: 80, align: right"] +0.73%[/TD]
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[TABLE="width: 69%, align: center"]
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[TD="align: right"] [/TD]
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The dollar was down helping push bonds and the I-fund higher.
The S&P 500 is flirting with a new high and depending on which resistance line you look at, it is either overly extended, or just getting started.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The weekly chart shows the the S&P riding above the longer-term resistance line for a third straight week. This looks extended unless the S&P is about to shift into a higher bullish gear, but this bull market is nearly 5 years old now and we haven't had a 10% correction in quite some time.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Dow, which led the way in a big way yesterday, did break above that triple top (chart only shows the double top) so we'll be looking for it to remain above there for the 3 to 5 days for confirmation of the breakout.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Dow Transportation Index was laggard yesterday and it actually put in a bearish outside reversal day after making a new high during morning trading on Wednesday. The outside reversal days can indicate a top is forming so we'll have to keep an eye out for that, and we may know soon enough as the new rising support line is being tested right now.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The dollar dipped below the 50-day EMA yesterday and nearly filled the recently opened gap, but it does remain above the descending resistance line. Suddenly, this chart doesn't look quite as bullish (for the dollar) unless the gap gets filled and the 20-day EMA can hold on any further pullback.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The weakness in the dollar helped bonds rally as the 50-day EMA held on the 7 to 10-year Treasury fund, while the yield on the 10-year pulled back down to the 50-day EMA an held.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
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Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
Posted daily at TSP Talk Market Commentary
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