TSP Talk Blog

Stocks were down modestly yesterday with the Dow losing 9-points and the S&P 500 dropping 0.19%. That's pretty tame considering the negative reversal day we had on Monday, but the small caps might beg to differ as they lagged again and lost a more serious 0.64%. Bonds closed lower as well.

Daily TSP Funds Return G-Fund: +0.0056% F-fund: -0.16% C-fund: -0.19% S-fund: -0.64% I-fund: -0.60% More returns

The S&P 500 (SPY) dipped back into the rising wedge and as we talked about the other day, and many times before, sometimes breakouts from wedge formations are fake-outs, and the actual break happens on the other direction. tThat's what we're watching for now.


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

The Nasdaq lost 0.4% on the day, finding support at the 20-day EMA and the bottom of the rising trading channel. Looks like it is reaching a make or break point as far as the short-term goes. If support holds, we're likely to see another attempt to make a new 52-week high. If it breaks, the 50-day EMA would be the next level of support to be tested.


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

The Transportation Index (IYT) remains in the rising wedge formation, which is getting more narrow each day. It went from the top of the wedge to the bottom in two days, so this is likely to break one way or the other in the coming days.


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

Bonds pulled back from their recent rally possibly forming a lower higher, although it's too early to say.


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

As we have been saying, bonds look bearish and were due for a bounce, but that bounce could be over and the longer-term downside trend may be resuming. Be careful in the F-fund.

In today's TSP Talk Plus report we look at the overbought / oversold indicator, the oil chart and other index charts. 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.