The title of last Friday's commentary was, "Tired and overbought", but the market acted anything but tired or overbought as the Dow ended up nearly 150 points and the incline was steady.  Volume is light and the bears seemed to have taken their vacation before the bulls as sellers were hard to find. 

The rally kept the S&P 500 above the resistance lines but the 50-day exponential moving average now looms above.  It [the 50-day EMA] is what put a halt to the first rally of this correction back in early August.


                                    Charts provided courtesy of www.decisionpoint.com


This is a tough week historically for stocks, but because volume is light, the indices can be jerked around by any big buyer or seller.  It's interesting that this historic chart shows only 22 trading days in August because Friday August 31 will be the 23rd trading day of the month.


                                    Chart provided courtesy of www.sentimentrader.com


Courtesy of sentimentrader.com, here an historic view of the week before, and the week after Labor Day weekend.  The Friday before the holiday looks promising, but that's about it. 


                                   Chart provided courtesy of www.sentimentrader.com


While we're at it, let's take a look at the September seasonality chart.  Like August, it's not normally a month to write home about, but of course there are exceptions.


                                 Chart provided courtesy of www.sentimentrader.com


The TSP Talk Sentiment Survey is on a sell signal this week after last week's 59% bulls, 27% bears survey results.  That 2.19 to 1 ratio puts the system in its first sell signal in five weeks. 
                              
Fred's TSP Trader System remains in the F-fund.  There has been some movement in the F-fund submodels but no change to the allocation.  Trader Fred has some interesting information to share with us today.  Read more on his system page.

The EbbChart System remains in the I-fund today, but for how much longer?  Find out the ebbchart system page.

My wife will be out of town this week and I'll have to spend some time at our gallery in her place after work.  Plus, my son's baseball team, which I coach, lost a doubleheader this Saturday and we'll be having an extra practice or two this week.  This should be a low volume, unpredictable week so I'll be using that to take some time off from the market myself.  I'll update the comments each night but I'll probably be keeping them short.

That's all for today.   I am currently 100% F fund.  See you tomorrow.

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