Tuesday was a very similar day to Monday in that stocks opened higher, made their daily highs in the morning, lost those gains, but closed off the lows with a late push higher. It's more churning after the breakout last Friday. The Dow gained 4-points and most indices closed with slight to modest gains, although the Transports lagged closing down on the day. The Nasdaq and S-fund made new closing highs.
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Internally, it was decent action with many more stocks advancing than declining and the NYSE and Nasdaq saw 308 new highs vs. 30 new lows. So while we are not seeing a rip roaring economy, the stock market is performing pretty well.We'll make this quick again today since volatility is so low and there are few changes to report.
The S&P 500 (C-Fund) made a new intraday high but closed off the highs and ending with a very small gain. The key support areas for now are the top of the flag and the new short-term rising support line. There's other support down near the 20 and 50-day EMAs but if those are testing we'll be talking about a failed breakout.
The DWCPF (S-fund) closed at a new high with its small gain but for a second straight day it tested the bottom of the rising F-flag.
The Nasdaq closed at a new high and it's always a plus to see the tech-heavy index leading the way to the upside.
The EFA (I-fund) had a nice day holding onto some gains that U.S. stocks lost after the international markets had closed. The dollar was down, which also helped. This may be a big inverted head and shoulders pattern, which would be very bullish, but first it has to break above some tough looking resistance.
The High Yield Corporate Bond Fund HYG is back to new highs this week after the pull back in July. Another good sign for stocks.
The AGG (Bonds / F-fund) had a good day yesterday and remains in a flag formation.
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
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