TSP Talk Blog

Stocks fell on Friday and bonds rallied. The Dow lost 123-points and once again small caps were the laggards. The S&P 500 and I-fund posted modest losses of about 1/2 of a percent.
I have been on vacation and won't get back until late Monday night so just a couple more quick commentaries before I get back on my regular schedule. I appreciate your patience while I visit some friends and family that I haven't seen in many years.

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The SPY (S&P 500 / C-fund) remains in an uptrend and Friday's selling took it back toward the middle of the rising channel. The 20-day and the bottom of the trading channel are the immediate levels of support to be tested if the downside slide continues.


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

The small caps need some help but a quick reversal up right here would improve this chart dramatically and create a little inverted head and shoulders pattern. Otherwise it risks creating a lower high and the downtrend would continue. Support from the 50-day EMA would go a long way since it has only closed below it once since late May.


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

Bonds were up and continue to trade within the trading channel between about 108.50 and 109.50. There's more room on the downside but a breakout to the upside is not out of the question - particularly if we see any selling in stocks this week.


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


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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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