TSP Talk Blog

Stocks closed higher yesterday as the Dow gained 30-points. The S&P 500 gained 2, which was enough to see it close at 2000 for the first time ever. Volume remains very light as we head into Labor Day weekend and the end of summer vacations.

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The action is typical pre-holiday-like in that volume is light and the bias is bullish.

The S&P 500 (C-fund) closed above 2000 for the first time (2000.02) and the SPY also closed at a new high.


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

The action wasn't all that impressive as we saw the Dow close about 50-points below its high of the day and both the Dow and S&P closed near the day's lows. Still, the final result was positive and small caps and Russell had a big day helping our S-fund.

The Wilshire 4500 gained 0.42% yesterday, and the S-fund was given a 0.49% gain, which was the 10th consecutive positive day for that fund.


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

The EFA (I-fund) poked its head into the large open gap but retreated and created another negative reversal day. The EFA ended the day basically flat, although the I-fund was given +0.39%. The rising wedge doesn't look great here and the descending resistance line has held for a couple of days.


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

The European market charts we have been watching actually blasted through the resistance we were also watching and you can see that the German DAX cut right through the 200-day EMA yesterday, but it is now dealing with the 50-day EMA. I figured the 200-day EMA would be the tough one, but I guess not.


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

Today is day -3 on the Labor Day Holiday chart. Today and Friday have very nice historical records, but after the holiday weekend things cool off quite bit.


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

The IEF Bond Fund is still holding up rather well and bond yields remain stubbornly low. There is always a bid under bonds as some money managers are mandated to own them, but there seems to be more to it than that. I wish I knew exactly what it was.


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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