Market Comments April 24, 2009 For those wondering where TSP Share Prices went, they are still posted on the home page and there is a link in the "Quick Link to" table above.

Today's Comments (Short Term Outlook)                            Printer  friendly

Major sectors getting a test Stocks were on that rollercoaster ride again yesterday, but instead of ending on a precipitous slide like we saw on Wednesday, the major indices rallied strongly during the last half hour of trading and the Dow closed up 70-points. There were no less than 10 moves above and below the breakeven level and once again it was the late trading that decided the entire day's result.      The S&P 500 once again managed to bounce off of that old resistance - turned support - line.  It also remains above both the 20 and 50-day moving averages. That's good, but the PMO indicator is starting to rollover so we are seeing a slowing in upside momentum.                      Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk  Yesterday we looked at the market leaders, the Nasdaq and the Dow Transportation.  Today let's take a look at the charts of two very important sectors; Housing and financials: Like the rest of the market, the housing index has rebounded strongly since the March lows, and so far, has had a successful test of the lows made in November of last year.  This is all good but now the index faces a formidable opponent during a bear market - the 200-day moving average.                    Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk The trend remains down, but a move to 100 could be a good sign for the intermediate-term.  The test in this index is here and now. The financials, represented by the exchange traded fund (ETF) XLF, shows a similar rebound although like the S&P 500, it has made a lower low since November.  It is trading above the 20 and 50-day moving averages, but is still about 30% away from the 200-day moving average.                   Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk The result of the banking stress test may be the next major catalyst for this index, as well as for the rest of the market.  The only question is, will the results be credible?  There is a lot at stake here and any major failure could really spook the market and the economy. That's all for today.  Thanks for reading!  Have a great weekend and we'll see you back here on Monday. Scribbler's TSP & Economic Report:  The free trial continues through the end of April.  Please click here for more information.