Stocks were mixed and mostly lower on Monday, although those leading Nasdaq and small caps stocks managed to pick up another gain. It was rather quiet after Friday's rally following the disappointing jobs report, so the bears didn't make any moves, while the bulls didn't push things. The Dow lost 148-points, about 100-points off the lows made just a few moments before the close, and was the laggard on the day.
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The S&P 500 was at its lows of the day with minutes to go in the trading day before a late push of buying took the indices off their lows. The indices continue to be extended and perhaps in need of a pullback, but we know how that goes -- rallies and corrections always seem to last longer than anyone expects.
The internals were mixed as the NYSE had about a 4 to 3 edge to decliners over advancing share volume, while the Nasdaq volume was almost the exact opposite -- 4 to 3 in favor of the advancers. So a pretty flat / mixed day.
The market continues to shrug off some pretty rough COVID numbers, even with the lockdowns causing quite a stir in some areas. I would think that this will eventually show up as a potential economic issue, but so far everyone seems to be looking at 2021, rather than what's in the news today.
The S&P 500 (C-fund) was down but technically it wasn't a bad day as one of the old resistance lines has been able to hold as support for the last few days. Clearly this index has come a long way since the late October low, but there have been few signs of slowing down yet. It will come, but it may be waiting for a few more bears to give up on their bets on the downside - just to frustrate as many traders as it can.
The DWCPF Index / S-fund was up yet again, and we've seen very few down days since November 2nd. So much for allowing the indices to breathe, but at some point it will have to exhale.
The EFA / I-fund did show some weakness yesterday as the rising, narrowing wedge did break down. Nothing too serious yet, but other than that one weird spike lower on November 30th, it's the only day that closed below the edge in about a month.
The price of oil sure seems to be expecting growth in the economy, and demand to pick up, but again I bring up the new lockdowns that are going into affect. The is a weekly chart and you can see how far it has come since the April low when it fell all the way below $10 a barrel, and here it is in the mid-40's again. It looks like there is room up to about 50, but again -- lockdowns.
The VIX spiked early and did rally 2.5%, but it drifted lower again into the close. There may have been some support found at the old resistance line of that descending trading channel.
BND (Bonds / F-fund) was up yesterday but it failed to get back above the descending resistance line after moving above it earlier in the day.
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
For more info our other premium services, please go here... www.tsptalk.com/premiums.html
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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The S&P 500 was at its lows of the day with minutes to go in the trading day before a late push of buying took the indices off their lows. The indices continue to be extended and perhaps in need of a pullback, but we know how that goes -- rallies and corrections always seem to last longer than anyone expects.
The internals were mixed as the NYSE had about a 4 to 3 edge to decliners over advancing share volume, while the Nasdaq volume was almost the exact opposite -- 4 to 3 in favor of the advancers. So a pretty flat / mixed day.
The market continues to shrug off some pretty rough COVID numbers, even with the lockdowns causing quite a stir in some areas. I would think that this will eventually show up as a potential economic issue, but so far everyone seems to be looking at 2021, rather than what's in the news today.
The S&P 500 (C-fund) was down but technically it wasn't a bad day as one of the old resistance lines has been able to hold as support for the last few days. Clearly this index has come a long way since the late October low, but there have been few signs of slowing down yet. It will come, but it may be waiting for a few more bears to give up on their bets on the downside - just to frustrate as many traders as it can.
The DWCPF Index / S-fund was up yet again, and we've seen very few down days since November 2nd. So much for allowing the indices to breathe, but at some point it will have to exhale.
The EFA / I-fund did show some weakness yesterday as the rising, narrowing wedge did break down. Nothing too serious yet, but other than that one weird spike lower on November 30th, it's the only day that closed below the edge in about a month.
The price of oil sure seems to be expecting growth in the economy, and demand to pick up, but again I bring up the new lockdowns that are going into affect. The is a weekly chart and you can see how far it has come since the April low when it fell all the way below $10 a barrel, and here it is in the mid-40's again. It looks like there is room up to about 50, but again -- lockdowns.
The VIX spiked early and did rally 2.5%, but it drifted lower again into the close. There may have been some support found at the old resistance line of that descending trading channel.
BND (Bonds / F-fund) was up yesterday but it failed to get back above the descending resistance line after moving above it earlier in the day.
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
For more info our other premium services, please go here... www.tsptalk.com/premiums.html
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.
