Taking a break
by
, 09-12-2013 at 10:45 PM (1219 Views)
09/13/13
Stocks took a break yesterday after three consecutive triple digit gains for the Dow. The initial jobless claims report came in better than expected, and living in Bizzaro World, where bad news is good news, and good news bad, the stock market paused in front of next week's Fed meeting where strong economic data could threaten investor's $85 billion QE. The Dow lost 26-points.
The S&P 500 (SPY) pulled back slightly and the modest downside target right now is for it to fill that small open gap.
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Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Transports saw a larger 1.2% decline, but it had tired out on Wednesday after a big rally, cluing us in the the followers would probably pause on Thursday. It now also has an open gap to deal with, and it is attracting it like a magnet. I am still somewhat intrigued by the July high holding as resistance as if it is a right shoulder of a head and shoulders pattern, although there really is no definitive head. It's kind of a headless H&S.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq filled its open gap already and any pullback continued could find support at the old resistance line near 3675. This is the chart that looks the best as it's the old major index that made new highs this week.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Without any major news events, I expect volume to dry up over the next few trading days as we approach next week's FOMC meeting on September 17 and 18. But with Syria, the Debt Ceiling, and a potential government shut down looming, a quiet news cycle may not be a slam dunk.
In today's TSP Talk Plus report we'll go over a few more charts including bonds and the sentiment surveys. 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! Have a great weekend!
Tom Crowley
Posted daily at TSP Talk Market Commentary
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