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Dow ends 9-day streak

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Stop the presses! The Dow was down yesterday - for the 1st time in the last 10 trading days. The losses were moderate and broad as most indices lost 0.4% or more.

The latter half of July has a negative reputation mainly because of earnings, and the recent reports have been mixed - some good, some not so good. The profit taking is healthy for now, but we'll see if it brings anything more meaningful in the coming days.

Daily TSP Funds Return

Being an election year we anticipated a good month for July and so far we have not been disappointed. The question recently has been, how quickly will buyers jump in once there is a pullback or some selling? We haven't see two negative days in a row in the S&P 500 since the Brexit lows, so that will be tested today (Friday).

The SPY (S&P 500 / C-Fund) was down but still managed to close at its 3rd highest level, ever. It is well above any meaningful support so there is more room to pull back - we're looking at 213 right now as a possible target, but once again it will be a matter of how quickly those who have missed the rally will jump on any weakness.




The DWCPF (S-fund) has been consolidating and forming a base since it broke out last week.




The Dow Transportation Index has pulled back from its recent peak and may be looking to test the old resistance line, which also happens to be the area where the 20-day EMA is crossing the 200-day EMA so that could be a good dose of support.




The EFA (I-fund) was down but remains above the 200-day EMA again, and that bull flag we drew yesterday is still very much in play.




The short-term indicators have actually come well off their extreme levels and are nearly neutral again.




The AGG (Bonds / F-fund) was up slightly but it did rebound strongly from some early losses creating a positive outside reversal day. The height of the day's range basically filled the apex of the rising wedge so support and resistance were both tested and held.




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 tomorrow.

Tom Crowley


Posted daily at www.tsptalk.com/comments.php

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S&P500 (C Fund) (delayed)

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DWCPF (S Fund) (delayed)

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EFA (I Fund) (delayed)

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BND (F Fund) (delayed)

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