TSP Talk Blog

Stocks rallied early on Tuesday but faded in late afternoon trading. The indices were mixed with the Dow gaining 6-points while the Nasdaq and Transports also added small gains. But the S&P 500 and small caps closed in negative territory.

A bomb threat cancelled a scheduled soccer match between Germany and the Netherlands that Chancellor Angela Merkel was planning to attend, and that seemed to spooked the markets midday.

Daily TSP Funds Return More returns

Oil was down again giving back Monday's gains as the coupling of stocks and the price of oil continues.

The SPY (S&P 500 / C-fund) was up early yesterday, but reversed down by the close. The loss was small but the reversal pattern is a little concerning. That 202.50 area looks like solid support with the 200-day EMA and the old September high meeting in that neighborhood.


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

The Dow Completion Index (small caps / S-Fund) is still below the key moving averages and may now be forming a bear flag.


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

The Dow Transportation Index attempted to get back above the 50-day EMA, but failed. Now it has a negative reversal pattern. There's not a lot of good things happening here, and until it gets back above the 8300 level we should assume a bearish outcome.


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

This EFA (EAFE Index / I-fund) never did fill that open gap and now it is testing the 50-day EMA while still in a bear market. I don't know how this will play out but the clues look bearish.


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

The AGG (bonds / F-fund) has bounced off the 108 area but has since created a bear flag. It filled the open gap and it remains below the major moving averages


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 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 on 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.