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Getting stretched?
Stocks were mixed yesterday
as the Dow gained 30-points, the S&P 500 added 1-point, and the Nasdaq
tacked on about 5, but the broader NYSE index, the small caps, and the I-fund all
lost ground aided by a stronger dollar.
The S&P 500 put in an inside day on Tuesday, which just means it did
not make a higher high, or a lower low, over Monday's action. Trying to
find something of interest to talk about other than the relentlessness
of the uptrend, I found that the prior two market peaks stalled when the
index moved 112 to 113 points above the 200-day EMA.
Chart provided courtesy of
www.decisionpoint.com, analysis by TSP Talk
With Monday's high being 1013, and the 200-day EMA currently at 1000,
any more upside action could be stretching things a little too far, if
they have not already.
Looking at the weekly chart of the S&P 500, you can see that
there are some longer-term
resistance areas starting to come into play near 1120 and 1140.
Chart provided courtesy of
www.decisionpoint.com, analysis by TSP Talk
A follow up to the NYSE overbought / oversold indicator shows that the
+500 area is still holding up as resistance. And, as I mentioned
in the first paragraph, the NYSE index actually closed down 3-points on
the day, which explains why this indicator moved down 152-points on a
day where the Dow gained 30-points.
Chart provided courtesy of
www.decisionpoint.com, analysis by TSP Talk
This is an options expiration week and
they generally perform a little better than average week and so far that is holding
true, but there does tend to be one nasty day during options week.
Look for that in the coming days, but even if we get it, it doesn't mean
the following day won't rebound just as quickly.
Post-options week
could be the week that starts the 2nd half of the month slide as we have
been seeing over the last several months, and we
talked about last week in our Weekly TSP Wrap Up.
Thanks for reading. We'll see you back here tomorrow.
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