Stocks pulled back as we head into the final stretch of the month and the first quarter. There was very little dip buying until the final 30 minutes of trading, where we have seen a lot of action lately from the bulls in that final hour. The lows of the day did a good job of filling in Tuesday's open gap on the S&P 500 chart so we could see if that was all stocks were trying to do during yesterday's dip. The Dow lost 65-points while the broader indices lost more percentage wise. Oil and bonds were up.
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The S&P 500 (C-fund) was down but rallied late after filling that open gap, which also happened to be in the area of the February highs, and bottom of that narrow short-term rising trading channel. A break below that support could trigger some trading algorithms to join in on the selling, but if it holds the buy programs will likely resume.
That's all for the day. I need to get out of this desk chair.
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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After decades of working hunched over staring at a monitor, this week my back and neck have told me that they have had enough. I am having trouble sitting at my desk for any length of time right now so, while I'm working on that with some exercises and a new desk layout, I am going to make this quick today and maybe tomorrow, depending on how I feel. Sorry. Hopefully by Monday I'll be in better shape.
The main catalyst yesterday was the rebound in price of oil back up near $108, and not surprisingly, stocks pulled back.
The dollar was down helping oil move up, as well as other commodities like gold and silver. That is a pretty big bull flag, but also potentially a double top with a couple of open gaps below the flag that may need filled.
Yield also dipped giving bonds (F-fund) a nice lift, but they remain in the descending channel.
Today is the final trading day in March, and the final day of a wild first quarter so there could be a lot of window dressing type trading as money managers get ready to put together their quarterly reports. They could buy or sell things today to make sure 1st quarter losing positions aren't prominent, and perhaps add some recent winners.
Bottom line, the action may not be orderly, and it also sets up a possible - new month, new direction on Friday and / or Monday as the window dressing ends and trading goes back to "normal."
We get the March jobs report on Friday and estimates are looking for a gain of about 500,000 jobs an an unemployment rate of 3.7%.
The main catalyst yesterday was the rebound in price of oil back up near $108, and not surprisingly, stocks pulled back.
The dollar was down helping oil move up, as well as other commodities like gold and silver. That is a pretty big bull flag, but also potentially a double top with a couple of open gaps below the flag that may need filled.
Yield also dipped giving bonds (F-fund) a nice lift, but they remain in the descending channel.
Today is the final trading day in March, and the final day of a wild first quarter so there could be a lot of window dressing type trading as money managers get ready to put together their quarterly reports. They could buy or sell things today to make sure 1st quarter losing positions aren't prominent, and perhaps add some recent winners.
Bottom line, the action may not be orderly, and it also sets up a possible - new month, new direction on Friday and / or Monday as the window dressing ends and trading goes back to "normal."
We get the March jobs report on Friday and estimates are looking for a gain of about 500,000 jobs an an unemployment rate of 3.7%.
The S&P 500 (C-fund) was down but rallied late after filling that open gap, which also happened to be in the area of the February highs, and bottom of that narrow short-term rising trading channel. A break below that support could trigger some trading algorithms to join in on the selling, but if it holds the buy programs will likely resume.
That's all for the day. I need to get out of this desk chair.
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
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To get weekly or daily notifications when we post new commentary, sign up HERE.
Thanks for reading. We'll see you back here tomorrow.
Tom Crowley
For more info our other premium services, please go here... www.tsptalk.com/premiums.html
To get weekly or daily notifications when we post new commentary, sign up HERE.
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.
