Pullback from resistance
Stocks gave back a portion of Wednesday's gains yesterday as the Dow
lost 114-points while volume remained very light.
For the TSP, the C-fund dropped 1.21%, the S-fund lost 0.83%,
the I-fund fell 0.71%, and the F-fund added 0.10%.
The
S&P 500 pulled back from the overhead resistance of the 20 and
50-day EMAs and the upper end of the trading range we are watching.
Volume has been drying up over the last few days.
Chart provided courtesy of
www.decisionpoint.com, analysis by TSP
Talk
The headlines are getting a little more worrisome lately:
The Bank of England says U.S. faces same problems as Greece
April's $83 billion federal deficit is nearly 3 times economist's
estimates
I don't usually care too much about the news unless it is moving the
market, but these type of headlines are not rearview mirror stories like
most. These are possibly carving out the future concerns for our
economy, and the way the market tends to react BEFORE events, we could
see the market decline and not have the evidence show up in our economic
reports for many months.
The writing is on the wall and many perma-bears and doom-and-gloomers
have been preaching about the problems for years, but like the housing
bubble and the credit crisis, it is likely that few will really believed them until the
market starts to crumble. They are like the boy who cried wolf.
If you are always negative on the market and the economy, no one will
believe you when it is really time to be concerned.
Our TSP Talk Sentiment
Survey came in at 51% bulls, 35% bears for a 1.46 bulls to bears
ratio, which is neutral. That keeps the system in the S-fund for
next week. Yesterday's sell-off may have saved it from a sell
signal as the early results on Thursday morning were more bullish than
the final result.
Anyway,
it is Friday and I have about had it this week with the market and it's
wild moves. It can get draining being in the market when it is
down 1% or more, or being out of the market what it is up 1% or more,
and with all the up and down moves lately, we are all feeling a little
beaten up.
That's all for today.
Thanks for reading and have a great weekend!
Tom Crowley
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