TSP Talk Blog

Stocks opened sharply lower on Monday, but made a nice comeback with a couple of indices closing in positive territory, including the Dow (+22-points) and the S&P 500, although by just a fraction of a point.

I'm at 35,000 feet heading home and hoping my laptop battery lasts. I will make this quick. I appreciate your patience during my vacation...

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The SPY (S&P 500 / C-fund) had a nice positive reversal day after the weak open and managed to close above the 20-day EMA again. The PMO indicator is dropping so it is question whether new highs will be tested this week.


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

The small caps opened sharply lower, closed well, but could not climb back above the 50-day EMA after surrendering it at the open. These little "h" formations are not usually bullish, but we see several on this chart that produced lows, so we'll see how this one turns out.


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

One of the biggest concerns yesterday was a 1% decline in the Dow Transportation Index, which is an attention grabber. It did find support and hold at the 20-day EMA so that is the test as we head into Tuesday.

Bonds were basically flat so I won't waste any battery time on their charts.

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Thanks for reading! We'll see you back here tomorrow.

Tom Crowley


Posted daily at TSP Talk Market Commentary

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