For the TSP, the C-fund lost 0.90% yesterday, the S-fund fell 0.35%, the I-fund dropped 1.82%, and the F-fund (bonds) gained 0.23% as investor fled to safety. 

We have been talking about the dollar being due for a bounce and we got the start of one yesterday.  The bad news is, the bounce took commodity stocks down hard, which is why the Dow and S&P 500 took the brunt of the losses, while the Nasdaq and small caps held up pretty well considering. 

So how much did the dollar rally yesterday?  In one day it nearly ran into the upper end of the descending trading channel already.  It is now testing the 20-day EMA, and that may be as far as it goes.  If not, the 50-dat EMA is the next test.
 
                         
                        Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

The good news is that the strength in the dollar helped push down the price oil dramatically; landing it below the $100 a barrel mark for the first time in a couple of months... 

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

... And with oil moving below the $100 mark, the market leading Dow Transportation Index actually closed up 1% on the day, and it was up 2% at one point before the late afternoon sell-off, after bouncing off of the 20-day EMA.

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

The S&P 500 wasn't quite as fortunate.  It is now flirting with the neckline of that inverted head and shoulders pattern.  I would actually like to see the S&P fill that gap near 1315 just so I can stop worrying about it.  As long as it is open, it will act like a magnet and the index should eventually fill it. 

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

Filling it just means the S&P will hit 1315 at some point, whether that's today or a few months from now, but an open gap on the S&P 500 chart is very rare. 

The NYSE went from being quite a bit overbought down into oversold territory, but nothing extreme yet.                             
       
                        Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

The TSP Talk Sentiment Survey gave another buy signal on Thursday after the 0.84 to 1 bulls (38%) to bears (45%) ratio.  That buy signal keeps the system's allocation at 100% S-fund for next week.  The system is currently up 8.41% in 2011, through Thursday's close.

Thanks for reading!  Have a great weekend!