TSP Talk Blog

4/12/12

Stocks saw a modest rebound yesterday with the Dow gaining 89-points, but investors weren't overly eager to buy as the index closed over 40-points off the morning highs.


For the TSP, the C-fund was up 0.76% yesterday, the S-fund gained 1.33%, the I-fund made 1.14%, and the F-fund (bonds) lost 0.15%.

The S&P 500 held onto some key support levels and it is now sitting right at the 50-day EMA. Looking at the chart, it looks like it could go either way, but some of the indicators suggest the worse may be over for now.


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

The NYSE overbought / oversold indicator nearly hit -900 after Tuesday's big sell-off, and that is a very oversold reading in a bull market. Since this bull market began in early 2009, a reading of -600 or lower has come at or near many short-term bottoms, and -900 was even more consistent.


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

Earnings season got off to a decent start this week when Alcoa posted a stronger than expected quarterly report after the close on Tuesday. It is not normally a market mover, but expectations were not very high and it may be setting the tone for some bigger reports coming this week.

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

Tom Crowley

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