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... and up again

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Stocks bounced back on Wednesday after Tuesday's sell-off. Most of the indices did not get back all of Tuesday's losses as the Dow picked up 121-points after losing 190 the prior day, but the Nasdaq Composite did and actually closed at a new all-time closing high.

Daily TSP Funds Return

The I-fund lagged again and bonds were slightly higher.

Just an FYI with Monday being the first of June...

Before last year, the first trading day in June over recent years had some big moves in both directions.

These are Dow points...

2014: +26
2013: +138
2012: -275
2011: -279
2010: -112

2009: +221
2008: -135

And the first few of days of June have an historically positive bias.


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

It's possible we that we've seen the successful test of the old resistance line of the cup and handle formation on the SPY (S&P500 / C-fund).


If that's the case we may have seen the lows of this dip on Tuesday, but it's been a long time since we've seen a convincing breakout from any kind of consolidation or basing action and I'm sure you are skeptical as well.


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


The
Wilshire 4500 (S-fund) basically got back its losses from Tuesday. Now its job is to move back above the 1120 level so that a higher low is followed by a higher high, which would make a new short-term uptrend.


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


The Nasdaq made a new closing high by a few points on Wednesday. A bull market needs the Nasdaq to come along, especially if the Dow Transportation Index is not.


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


The
EFA (EAFE index / I-fund) also bounced back and still has some room on the upside before it fills the open gap created on Tuesday. Right now there is a new slow rising trading channel developing. It's actually just an extension of the trend from earlier in the year but suddenly it appears more calm and sustainable.


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


The dollar was up but had a negative reversal day. It was due for a rest after a 7 day explosion higher creating several open gaps below. There's some resistance near 25.80 but sometimes these straight-up moves run longer than would seem reasonable. However, yesterday's action may have put the breaks on a little.


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


The AGG (bonds / F-fund) rallied on Wednesday after a slow start. The last time it made a bearish flag like the one it is now in, it broke down. The 200-day EMA is doing a good job of holding here so far.



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



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ead 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.

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S&P500 (C Fund) (delayed)

(Stockcharts.com Real-time)
DWCPF (S Fund) (delayed)

(Stockcharts.com Real-time)
EFA (I Fund) (delayed)

(Stockcharts.com Real-time)
BND (F Fund) (delayed)

(Stockcharts.com Real-time)

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