TSP Talk Blog

Stocks bounced back on Tuesday after a one-day pullback that took it below a key support line. After the initial morning sell-off yesterday, stocks came right back but spent the rest of the day in a tight range as we wait for the FOMC meeting to conclude this afternoon. The Dow gained 72-points and we saw positive reversal days across the board.

Daily TSP Funds Return More returns

The S-fund didn't get a very good price yesterday and the I-fund had to pay back some of Monday generous gift from the TSP, while bonds had a rough day.

The SPY (S&P 500 / C-fund) sank early on Tuesday, but true to its nickname, it because a "Turnaround Tuesday." We saw a big positive reversal bar created which usually means at least short term continued momentum to the upside today. The old resistance line, which broke down on Monday, was recaptured on Tuesday. The bulls are back in charge for now, but the bears have not gone without a fight.


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

The Wilshire 4500 (S-fund) pulled back on Tuesday, hit the 50-day EMA and bounced right back as it has done a couple of times in recent months. The reversal day is impressive looking but it still has a little work to do to get back above the 20-day EMA.


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

The Nasdaq, Russell 2000, and the Dow Transportation Index - all market leaders, created big positive reversal days but still remain at levels that require more upside action before they can be considered to have completed their short-term pullback.


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

The EFA (EAFE Index / I-fund) is quite the tidy fund. It loves to fill those open gaps as quickly as possible in most instances. Yesterday it was able to fill the open gap below, but did not break below the old resistance line, which we consider very important since that resistance was part of a normally bearish rising wedge formation.


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

The weakness in the dollar continues and since peaking in March, it has really helped the I-fund lead the way in our TSP funds.


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


The May seasonality chart kicks in on Friday the 1st.


Chart provided courtesy of www.sentimentrader.com

The AGG (bonds / F-fund) fell sharply on Tuesday seems to be having trouble with that old support line that broke and has become resistance.


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


Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the Sentiment Survey Results and the allocations of the TSP and ETF Systems. 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 www.tsptalk.com/comments.php

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.