Market Comments July 7, 2009  Current TSP Share Prices

Today's Comments (Short Term Outlook)                            Printer  friendly

Nice reversal Stocks opened with some downside follow through to Thursday's big sell-off, but after a couple of pushes down, the Dow ended the day in a strong position at the highs of the day.  The C fund had a modest gain on the day, but small caps (S fund) and the the I-fund could not climb into positive territory.   Volume wasn't very indicative of a major reversal but it was slightly higher than what we saw late last week. The S&P 500 actually broke below the neckline of the head and shoulders pattern that we talked about yesterday, but climbed back above it by the close.  It remains below the 3 major exponential moving averages (20, 50, 200) but yesterday's reversal may have some momentum behind it so we could see it taking a shot at moving back above the 50-day EMA.                      Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk As with any head and shoulders pattern, the support and resistance is getting closer and closer together and it's just a matter of time before one of them gives.  Currently we are looking at support in the 890-895 area, and resistance near 925. The PMO indicator is heading down again, and remains on a sell signal as the indicator sits below its 10-day moving average. In the short-term, the bulls may take advantage of the reversal we saw yesterday.  Momentum may have swung so buyers may be around early.  The bears may step aside and see what happens.  If the bulls can not put together some follow through to this reversal, the bears will surely be ready to pound the market back down again.  But the ball is now in the bulls' court.  If you didn't see, we decided to start selling TSP Travel Mugs.  We had been giving away several types of stainless steel mugs as monthly prizes for the AutoTracker contest winners over the years, but we never made them available to everyone before.  I don't know if this will be an ongoing thing or just temporary until this batch is sold, but they are pretty cool and you may want to get one or two before they are gone.  They are 16oz, stainless steel in and out, and have cool grippy things on the side.                             That's all for today.  Thanks for reading.  We'll see you back here tomorrow!