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Post jobs report dip

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Stocks opened lower on Monday morning and the indices really couldn't get any traction during the day, closing near the lows. The Dow lost 76-points with a similar percentage loss in the S&P 500. The Nasdaq bucked the trend as large tech stocks had a strong day but if you look deeper you will see that about 6 stocks were down on the Nasdaq for every 4 that were up so the large caps strength may be masking some internal weakness.

Daily TSP Funds Return


The small caps and the Transports, normally stocks we want to see lead on the upside, were the laggards again falling 0.54% and 0.89% respectively.

With the jobs report behind us, let's take a look at what happened to the S&P 500 after the index was at a new 52-week high when the payroll numbers came in meaningfully less than expected, as was the case on Friday...


Chart provided courtesy of www.sentimentrader.com


The SPY (S&P 500 / C-fund) pulled back modestly yesterday closing at the lows of the day, but so far that old bull flag resistance line has held as support. The sideways action has helped this index come off of some overly extended levels and it is allowing the 50 and 200-day EMAs to catch up some, although there is still a lot of real estate between the S&P and those EMAs.




The DWCPF (S-fund) also pulled back to the top of its flag and will be looking for support, otherwise it may be considered a failed breakout.




The Dow Transportation Index continues to lag badly and is well off its December 9th high, and while it has moved sideways for several days, it remains in a downtrend and below the 20-day EMA.




The EFA (I-fund) pulled back slightly yesterday and filled another small gap. The red gaps remain open.




The AGG (bonds / F-fund) posted a decent gain and moved back above the 50-day EMA. That's not bad action and as long as it remains in the rising channel, a short-term bullish case for bonds can be made. Long-term, not so much.




Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the allocations of the 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 www.tsptalk.com/comments.php

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S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)
DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)
EFA (I Fund)
iShares MSCI EAFE Index (EFA)
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)