TSP Talk Blog

Stocks opened lower on Thursday but the bulls continued to lurk and they ended the day by pushing the indices near their day's highs, although it was still a loss. The Dow fell 37-points and it looked like a digestion of Wednesday's big gains.

Daily TSP Funds Return More returns

The TSP stocks funds all posted small losses while bonds (F-fund) ticked higher. With one trading day to go in May, the S-fund leads with a monthly gain of 2.36%, followed by the C-fund at +1.93%, and the I-fund is up 0.34%.

Despite the small loss, the SPY (S&P500 / C-fund) posted a bullish reversal day yesterday - closing near the highs of the day. The bears are trying to push it down but there continues to be a buy the dip counter pressure. It's no runaway train, but it doesn't take a market wizard to see a chart that starts in the lower left hand corner and ends near the top right. We're in a bull market so we shouldn't be surprised to see a bullish outcome.


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

The Wilshire 4500 (S-fund) was down slightly Thursday, and despite a strong turnout in May, it is still lagging the large caps as far as reaching new highs.


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

The EFA (EAFE index / I-fund) has a large open gap above and below the current levels. It is resting on a short-term support line and it would have to break below that support line to fill the gap below.


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

The strength in the dollar over the last couple of weeks has put pressure on the I-fund in May and it's why the C and S-funds have outperformed this month.


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

In case you missed it Thursday: 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. Note that nothing on this chart says 100%.


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

The AGG (bonds / F-fund) was basically flat on Thursday and the current rebound off of the 200-day EMA is now close to testing the 50-day EMA.


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! Have a great weekend!

Tom Crowley


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