TSP Talk Blog

Despite some decent gains in the major indices, the market seems to be on hold waiting for something. Perhaps it is waiting on the outcome of the auto industry bailout, or perhaps it is just the season to be inactive.

The S&P 500 was up and down all day yesterday, finally closing the day up an impressive 1.2%. Small caps did even better. But the rally came on very light volume, and once again, the market put in an inside day. That is two days in a row of lower highs and higher lows. Not much conviction either way.


Chart provided courtesy of www.decisionpoint.com

I really have nothing to add to yesterday's commentary. Basically we have a market that is overbought in the short-term and, based on the put/ call ratios, we have the smart money getting more defensive while the dumb money gets more bullish.

I have no clue how the market will react to the auto industry bailout, whether it is approved or not. The reaction to the bailout of the financial industry surprised me so I don't even want to guess. This one is tough to read.

I'll call it a day early today as I want to see how today unravels before speculating any further. Thanks for reading. See you back here tomorrow!