It was a relatively quiet day on Thursday as investors stepped aside after the big post-FOMC policy statement rally on Wednesday afternoon. The weaker than expected 1.5% Q3 GDP number that came out before the opening bell gave them reason to pause, although the the Dow and S&P did close well off the morning lows.
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The Dow only lost 24-points while once again smaller stocks lagged, but Wednesday was such a big day for the small caps that profit taking shouldn't be too surprising. Bonds were down sharply.
The SPY (S&P 500 / C-fund) continues to rise upward just below the rising resistance line. It looks a little overbought and perhaps a pullback to test the rising support line would be a healthy move - although that is a large rising wedge and they can be bearish.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Dow Completion Index (small caps / S-Fund) pulled back after Wednesday's big day and it is back below the neckline of the inverted head and shoulders and below some descending resistance, but it has closed above the 50-day EMA for a 2nd straight day.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The EFA (EAFE Index / I-fund) also has an inverted head and shoulders pattern, which can be bullish, but it still needs to prove itself by getting above the 200-day EMA.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (bonds / F-fund) gapped down after the GDP report Thursday morning, and fell below the support of the rising trading channel. That left an open gap that we know tend to get filled quickly, but it will have to move back into the channel to do that.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
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Thanks for reading. Have a great weekend!
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
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