It was a light volume trading day on Monday and those who did trade were able to push things around quite a bit as we saw another late sell-off just before the close. The Dow did gain 130-points, but it was up over 200 early on. The bulls were again avoiding the beaten down Nasdaq as it lost another 0.49%.
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The difficulties in the Nasdaq make for a curious market. There doesn't seem to be a rush for the exit for stocks in general. Instead assets are just being shuffled around from one sector to another. While the Nasdaq is breaking down and hitting a 7-week low, the Dow, Transports and small caps were making new highs - or coming close.
We get the June Jobs Report on Friday and estimates are looking for a gain of 173,000 jobs for the month, and an unemployment rate of 4.3%.
The SPY (S&P 500 / C-fund) found solid support at the 50-day EMA during last Thursday's sell-off and reversal. You can see those black candlestick formations, which don't mean the S&P was down that day, but rather that it closed lower than it opened. That could be a warning sign but being pre-holiday light volume action, it may not mean anything. The resistance at 243 may be a test for the rest of the week.
Despite new high is some indices, the weakness in the Nasdaq 100 has taken some of the thunder away from the bullish case. It has taken on some technical damage, but again that was pre-holiday action and we'll have to see how investors respond the rest of the week, and into next week when volume starts to pick back up.
The DWCPF (S-fund) pushed back toward that rising resistance line, which has held repeatedly, but this long consolidation does look pretty good. The question is whether it can break out or is the consolidation is going to continue?
The Dow Transportation Index made a new all time high on Monday but pulled back toward the end of the day to close just below the March 1 high. It's come a long way since the lows in May and now a double top stands in it's way between new highs and a pullback.
The AGG (bonds / F-fund) was down on Monday and trying to hold at the 50-day EMA. The 10-year Treasury yield made a 7-month high on Monday, hitting 2.35%. So are the lows in yields in, with a top in bond prices?
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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We get the June Jobs Report on Friday and estimates are looking for a gain of 173,000 jobs for the month, and an unemployment rate of 4.3%.
The SPY (S&P 500 / C-fund) found solid support at the 50-day EMA during last Thursday's sell-off and reversal. You can see those black candlestick formations, which don't mean the S&P was down that day, but rather that it closed lower than it opened. That could be a warning sign but being pre-holiday light volume action, it may not mean anything. The resistance at 243 may be a test for the rest of the week.
Despite new high is some indices, the weakness in the Nasdaq 100 has taken some of the thunder away from the bullish case. It has taken on some technical damage, but again that was pre-holiday action and we'll have to see how investors respond the rest of the week, and into next week when volume starts to pick back up.
The DWCPF (S-fund) pushed back toward that rising resistance line, which has held repeatedly, but this long consolidation does look pretty good. The question is whether it can break out or is the consolidation is going to continue?
The Dow Transportation Index made a new all time high on Monday but pulled back toward the end of the day to close just below the March 1 high. It's come a long way since the lows in May and now a double top stands in it's way between new highs and a pullback.
The AGG (bonds / F-fund) was down on Monday and trying to hold at the 50-day EMA. The 10-year Treasury yield made a 7-month high on Monday, hitting 2.35%. So are the lows in yields in, with a top in bond prices?
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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