09/04/13
Stocks opened sharply higher Tuesday morning, producing a gap up opening on many indices. That gap was closed within a couple of hours however, and the Dow spent most of the afternoon in negative territory before a late push higher gave the Dow a 24-point gain by the close.
[TABLE="width: 88%, align: center"]
[TR]
[TD="width: 305"]
[TD="align: center"] Daily TSP Funds Return[TABLE="width: 159"]
[TR]
[TD="align: right"] G-Fund:[/TD]
[TD="align: right"] +0.0176%[/TD]
[/TR]
[TR]
[TD="align: right"] F-fund:[/TD]
[TD="align: right"] -0.41%[/TD]
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[TD="align: right"] C-fund:[/TD]
[TD="align: right"] +0.42%[/TD]
[/TR]
[TR]
[TD="align: right"] S-fund:[/TD]
[TD="align: right"] +0.39%[/TD]
[/TR]
[TR]
[TD="align: right"] I-fund:[/TD]
[TD="align: right"] +1.60%[/TD]
[/TR]
[/TABLE]
[TABLE="width: 69%, align: center"]
[TR]
[TD="align: right"] [/TD]
[/TR]
[/TABLE]
[/TD]
[/TR]
[/TABLE]
The I-fund was up 1.6% yesterday, despite the EAFE only being up about 0.19%, but don't forget that the overseas markets were open on Monday while ours were closed, and there were some big rallies across the international markets.
The S&P 500 (SPY) nearly filled the open gap created from last Tuesday's selloff, but it backed off at a confluence of resistance where the 20-day EMA, the 50-day EMA, the top of the open gap, and the short-term descending resistance line, meet. Also, that is looking like a bear flag that may be ready to breakdown. We are seeing some positive developments in some indicators, but right here, right now, this chart isn't looking promising.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq 100 (QQQ) basically filled its open gap, and that makes both overhead gaps filled. The lone open gap on this chart remains the one below 74. It will likely get filled at some point, but when? September seems like a good month for something like that to happen.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The yield on the 10-year Treasury gapped up on Tuesday morning nearly hitting recent highs, but closed weakly and produced a negative reversal day despite being up 0.99 on the day. The gain on the day sent the F-fund down 0.41%, but the reversal day may mean lower yields and higher bond prices today (Wednesday.) That gap will want to get filled near 2.75%.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The jobs report comes out this Friday and that is likely on all investor's radar considering how the economic data will impact the Fred's decision on whether to taper their bond buying or not. But Syria, oil, and bond yields will also be leading the market this week.
In today's TSP Talk Plus report we'll go over a longer term chart of the S&P and the Transports, talk about gaps, the smart money put/call ratio, and look at a big reversal in oil yesterday. 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 TSP Talk Market Commentary
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