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| Today's Commentary (Short Term Outlook) |
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New
high and oversold? Stocks pushed higher in early trading yesterday as many indices made new 52-week highs, but a late afternoon sell-off left the Dow down 92-points and all of the TSP stock funds finished in the red. Bonds were also down.  The S&P 500 put in an outside day, as we actually saw a new 52-week high before sliding to a 6-day closing low.  Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk Here's a closer look at the outside day, where the high was above Tuesday's high, and the low was below Tuesday's low, and it is considered an outside reversal day because it closed below Tuesday's low...  Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk I thought that it was very interesting that many of the major indices, including the S&P and Nasdaq, made new 52-week highs yesterday, yet we are seeing oversold readings on the overbought/oversold indicator. The NYSE is also slightly oversold but the Nasdaq's divergence was much more pronounced.  Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk I wish I had access to historical data like SentimenTrader.com, because I would sure like to see how often something like this occurs. I don't recall ever seeing it before, and it would be nice to see how the market reacted after such an unusual event. eBay had reported a weaker than expected earnings report and while eBay is on the Nasdaq and at one time considered sort of a tech stock, it is really now more of a measure of consumer spending. Let's see how this affects the broader market today. As I write this on Wednesday night, the futures are down slightly, but Asian stocks are down over 1%. That's all for today. Thanks for reading. We'll see you back here tomorrow! |