TSP Talk - Thrift Savings Plan Strategies

Market Comments

September 10, 2009

Current TSP Share Prices

Today's Commentary (Short Term Outlook)

Resistance again

After last week's steep sell-off, stocks have now rallied for four consecutive days. For the second day in a row, all of the TSP funds closed higher. The S-fund was the big winner yesterday with a gain of 1.4% while the C and I funds picked up about 0.8%.

The S&P 500 had broken through the lower end of the smaller rising wedge formation last week, and rallying back up to that old support as it has, is typical technical analysis action. But that old support line may now act as some resistance.

The resistance is rising and we saw the S&P 500 ride resistance up for several weeks before the last pull back, so it could easily react that way again. With resistance overhead and an open gap on the chart at 1016, I wouldn't be surprised to see a little breather in stocks over the next few trading sessions.

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

The dollar continues to struggle but just yesterday it broke below the declining support line. It was able to close back above it but that upside down cup & handle formation is bearish and they tend to break to the down side eventually.

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

This is good news for the I-fund, particularly if stocks continue to rally as the gains could be magnified.

Today is our weekly market sentiment survey (on the right side) . If you get a minute, we'd like your input. Are you bullish or bearish? Thanks!

For current and potential subscribers to Scribbler's TSP & Economic Report; If you haven't heard, Scribbler will be going from a twice weekly report to a daily report beginning this week. This will not affect current monthly and annual subscribers price-wise, but in a couple of weeks the subscription prices will be increased for new subscribers. If you have been considering a subscription to Scribbler's service, you may want to lock in the current prices.

That's all for today. Thanks for reading! We'll see you back here tomorrow.

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