Fed snoozer
by
, 10-30-2014 at 01:22 AM (1719 Views)
The stock markets closed slightly lower yesterday as the Dow gave up 31-points. Given Tuesday's rally, yesterday's action is rather insignificant in both value and technical analysis-wise.
Daily TSP Funds Return
The TSP funds, both stocks and bonds, saw small to modest losses.
The Fed didn't hit us with any concerning buzz words and there were no big surprises - if you believe allowing QE3 to end is not a surprise. Most expected it so the market didn't react too much, although there was some midday fireworks after the policy statement, but that's just typical speculation and trading that we see after most FOMC meeting statements. By the close, most indices were where they were before the announcement.
The SPY (S&P 500 / C-fund) posted a small loss on Wednesday as the Fed's action didn't have much of an impact except to get an intraday spike down to test the bottom of the short-term rising trading channel. That big gap remains open and it may be becoming a breakaway gap, which can take a long time to fill, but as I have said many times, open gaps keep my attention and have us looking over our shoulders and that's why I prefer to see them get filled sooner rather than later, and that's what they tend to do. Let's get it filled so we can stop worrying about it.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Wilshire 4500 (S-fund) did some backing and filling of Tuesday big 2% rally. Nothing out of the ordinary here.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The Russell 2000 (small caps) did the same... A big day followed by a little digestion of those gains.
Chart provided courtesy of www.stockcharts.comm, analysis by TSP Talk
The EFA (EAFE Index / I-fund) actually made a negative outside reversal day pattern, but it also filled a small open gap on the downside so the bigger concern may be the 50-day EMA that it is closing in on, which may act as resistance.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
The AGG (Bonds / F-fund) fell through the 20-day EMA yesterday and the slow descending trading channel seems to be running counter to the S&P 500 quickly ascending trading channel. There is a little stronger support where the 50-day EMA meets the August highs, so that could be the next target on the downside.
Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk
Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the Sentiment Survey Results and its TSP and ETF Systems. For more information on how to gain access and a list of the benefits of being a subscriber, please go to: www.tsptalk.com/plus.php
Thanks for reading! We'll see you back here tomorrow.
Tom Crowley
Posted daily at TSP Talk Market Commentary
The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.