The S&P 500 had been up for five straight days since Election Day and yesterday it took a little breather. Perfectly normal. What was a little disturbing was the selling in the small caps and the I-fund, although the S-fund gets a pass for a double top pullback from all time highs. The I-fund is another story and it is desperately looking for support. Bonds were down with yields moving up again.
The S&P 500 had a modest loss yesterday after a 5-day winning streak, and the loss is nothing too concerning at this point.
I mentioned yesterday that the S-fund was hitting all time highs, and seeing a little profit taking at a double top s typical. It could be a brief dip or technically, retracing some if this month's big gains would clean up some of the gaps opened along the way.
The I-fund has been in a completely different situation as it has fallen sharply since the dollar started rallying a month or so ago. Now the chart is down testing some key support levels and this is either getting close to a good time to jump in, or it is about to get very ugly if that support can't hold.
We'll get the CPI report today, the PPI report on Thursday, and Retail Sales on Friday so we do have some potentially market moving data this week. With most key earnings reports out of the way - although Nvidia reports next week - this inflation and economic data will be the key catalysts to keeping the rally going.
As I mentioned yesterday, I am out of town with my wife for a day for our anniversary, so this will be a brief commentary and I'll be back tomorrow.
The S&P 500 (C-fund) pulled back modestly at the top of the trading channel. There are some open gaps below but we may see some dip buyers before both get closed - but perhaps the top one will satisfy the chart before another move higher. The bulls are in charge but short-term profit taking is always part of the game after a big rally.
The DWCPF (S-fund) pulled back to give up some of Monday's gains, and it filled the open gap in the process. It certainly could fill the red open gap, but I think the dip buyers will be faster than that.
Thanks so much for reading! We'll see you back here tomorrow.
Tom Crowley
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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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.
The S&P 500 had a modest loss yesterday after a 5-day winning streak, and the loss is nothing too concerning at this point.
I mentioned yesterday that the S-fund was hitting all time highs, and seeing a little profit taking at a double top s typical. It could be a brief dip or technically, retracing some if this month's big gains would clean up some of the gaps opened along the way.
The I-fund has been in a completely different situation as it has fallen sharply since the dollar started rallying a month or so ago. Now the chart is down testing some key support levels and this is either getting close to a good time to jump in, or it is about to get very ugly if that support can't hold.
We'll get the CPI report today, the PPI report on Thursday, and Retail Sales on Friday so we do have some potentially market moving data this week. With most key earnings reports out of the way - although Nvidia reports next week - this inflation and economic data will be the key catalysts to keeping the rally going.
As I mentioned yesterday, I am out of town with my wife for a day for our anniversary, so this will be a brief commentary and I'll be back tomorrow.
The S&P 500 (C-fund) pulled back modestly at the top of the trading channel. There are some open gaps below but we may see some dip buyers before both get closed - but perhaps the top one will satisfy the chart before another move higher. The bulls are in charge but short-term profit taking is always part of the game after a big rally.
The DWCPF (S-fund) pulled back to give up some of Monday's gains, and it filled the open gap in the process. It certainly could fill the red open gap, but I think the dip buyers will be faster than that.
Thanks so much for reading! We'll see you back here tomorrow.
Tom Crowley
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
Questions, comments, or issues with today's commentary? We can discuss it in the Forum.
Daily Market Commentary Archives
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.
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.
