Stocks were up for a sixth straight day on Tuesday, and Tuesdays have been the saving grace for the market this year. The Dow gained 65-points, but that was off the early triple digit gain highs. The small caps and the Nasdaq led to the upside, which is good to see.
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Tuesdays have been very strong this year. The Dow has been positive for 6 consecutive Tuesdays, and for the year (2014) Tuesday's have gained over 8%, while the rest of the days of the week are actually down 6% in 2014. Of course now that we (and probably a lot of other people) are talking about it, the trend will probably end.
The SPY (S&P 500 / C-fund) chart looks quite nice here, as do the charts of the Dow and Transportation Index. We've talked about the small caps and the Nasdaq lagging and their charts not being in quite as good of shape, but yesterday's action in those indices helped.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Looking back a year or so, there is reason to believe that the S&P will reach new highs and continue higher. It did so time and time again after testing the rising support line on the weekly chart. As we have said many times, if the chart starts in the bottom left hand corner, and ends in the top right, it's a bull market.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
This is just a short-term chart but you can see that the Nasdaq, which had a very nice day thanks to some strong earnings from the tech sector, is still officially in a downtrend, is still below the 50-day EMA, and is actually below where it was back in late January, so the "bull market" definition isn't as strong here. Another 200-points to the upside and it will be about where the Dow and S&P are - chart-wise.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Dow Transportation Index actually made a new high yesterday. This market leader closed in new high territory, which is always nice to see, but like most indices, it is probably due for a little consolidation. A breakout on high volume would impress me, but it would also surprise me.
Chart provided courtesy of www.sentimentrader.com, analysis by TSP Talk
Bonds were flat to slightly higher yesterday, and they don't seem to be telling the same story as the stock market. If the stock market is as strong as is trying to tell us, I would expect bond prices to be moving lower, but they really aren't. We are seeing flat to higher prices as yields remain suspiciously low.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
I really like what I see in some of the charts, while other have something more to prove to me. There are some reasons to be concerned, but isn't that always the case?
Read more in today's TSP Talk Plus Report. We post more charts and indicators, plus discuss the Sentiment Survey Results and its 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 TSP Talk Market Commentary
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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Tuesdays have been very strong this year. The Dow has been positive for 6 consecutive Tuesdays, and for the year (2014) Tuesday's have gained over 8%, while the rest of the days of the week are actually down 6% in 2014. Of course now that we (and probably a lot of other people) are talking about it, the trend will probably end.
The SPY (S&P 500 / C-fund) chart looks quite nice here, as do the charts of the Dow and Transportation Index. We've talked about the small caps and the Nasdaq lagging and their charts not being in quite as good of shape, but yesterday's action in those indices helped.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Looking back a year or so, there is reason to believe that the S&P will reach new highs and continue higher. It did so time and time again after testing the rising support line on the weekly chart. As we have said many times, if the chart starts in the bottom left hand corner, and ends in the top right, it's a bull market.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
This is just a short-term chart but you can see that the Nasdaq, which had a very nice day thanks to some strong earnings from the tech sector, is still officially in a downtrend, is still below the 50-day EMA, and is actually below where it was back in late January, so the "bull market" definition isn't as strong here. Another 200-points to the upside and it will be about where the Dow and S&P are - chart-wise.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Dow Transportation Index actually made a new high yesterday. This market leader closed in new high territory, which is always nice to see, but like most indices, it is probably due for a little consolidation. A breakout on high volume would impress me, but it would also surprise me.
Chart provided courtesy of www.sentimentrader.com, analysis by TSP Talk
Bonds were flat to slightly higher yesterday, and they don't seem to be telling the same story as the stock market. If the stock market is as strong as is trying to tell us, I would expect bond prices to be moving lower, but they really aren't. We are seeing flat to higher prices as yields remain suspiciously low.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
I really like what I see in some of the charts, while other have something more to prove to me. There are some reasons to be concerned, but isn't that always the case?
Read more in today's TSP Talk Plus Report. We post more charts and indicators, plus discuss the Sentiment Survey Results and its 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 TSP Talk Market Commentary
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.
