The negatives mount but stocks continue higher
                         
Stocks are hanging in there but the negatives continue to pile up.  The Dow lost 7-points on Friday, but the other major U.S. indices closed higher.
                                  
For the TSP, the C-fund was up 0.08% on Friday, the S-fund gained 0.37%, the I-fund fell 1.01%, and the F-fund (bonds) gained 0.69%.  For more on the weekly and monthly returns, please see our TSP Weekly Wrap-up.  

The S&P 500 continues to climb and at some point it will pull back... but when?  Before the holidays?  After the holidays?  During the holidays? 
                      
                       Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

I am seeing a lot of negatives out there but as I have been saying, the trend is up and barring a crash, we should see a break in the trend before any major damage is done.  Still, taking some profits is not a bad idea.  That is the one nice things about getting those unlimited moves to the G-fund after you've made your 2 transfers for the month.  This way you can move out slowing if you don't want to be completely out of stocks during the holidays, yet you can book gains if this market continues to climb in the New Year.

The dollar is really using every support and resistance line it can.  It is finding support at the 50-day EMA on pullbacks, finding resistance at the 200-day EMA, and after breaking below the support of its recent rising trading channel, that line seems to want to act as resistance on this bounce - although that resistance is rising.

                        
                       Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

This week, and next will be a battle between profit takers, dip buyers, window dressers, and holiday seasonality.  It is going to be tough to do much analysis during the low volume trading.

The TSP Talk Sentiment Survey System came in at 56% bulls, 32% bears for a 1.75 bulls to bears ratio.  That is a neutral reading so the system will hold onto its 100% S-fund allocation for this week.  The System is up 33.4% for the year.

Administrative Note:  One of our long time forum members, Intrepid_Trader, will be starting a new Premium Service here on TSP Talk.  Intrepid developed his own trading system and has had very good success over the years trading his TSP account, and IRA accounts, and has been consistently near the top of our AutoTracker. 

We are offering a free trial to the service for the next several weeks.  You just need to create a login and password in the premium services area (if you don't already have one.)  No payment information is needed.  Just create an account.  Sign in, and you will have immediate access to Interpid Trader's Investment Strategies Reports. 

Thanks for reading!  We'll see you tomorrow.

Tom Crowley