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New all-time highs for Dow, S&P, and Nasdaq

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Stocks rallied on Thursday as all three major indices, the Dow, S&P 500, and the Nasdaq, all made a new all time closing high on the day. Surprisingly, that hasn't happened since 1999. The Dow gained 118-points.

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So technically, the charts look good, but are they overly extended or ready for a new leg higher? The answer may be in the price of oil which rallied 6% yesterday, and as you will see in the charts below, oil is at an interesting juncture.The bears will certainly want to sell this breakout and that will be the test in the short-term.

The SPY (S&P 500 / C-Fund) made a new all-time intraday and closing high yesterday. We saw a strong rally off the Brexit lows but since the second week in July there hasn't been a whole lot of excitement and we actually haven't had a 1% day in over a month. It's been a slow sideways grind with little movement except for the rally after the jobs report. We saw those gains disappear earlier this week but yesterday's action changes things a bit since the top of the fag seems to be holding.




The DWCPF (S-fund) did not make a new high but the recent action could be interpreted as a small bull flag which we can almost assume will break higher as they tend to do.




The price of oil may have been the catalyst for Thursday's rally as it moved up 6% on the day, a day after it looked like it was about to rollover. We either have a bear flag formed, or it may also be considered a "V" bottom given the angle of the flag. It's a little too vertical for a flag. But it stalled at the 50 and 200-day EMA's on Thursday and that's the story at this point. Can it continue higher above those tough resistance areas?




The EFA (I-fund) made a new high for 2016, but if you look at a long-term chart you will see this one is still well off its all-time highs. This could be a big inverted head and shoulders pattern, as we discussed the other day, and if that's the case getting above that resistance line / neckline is key. A breakout would give it a very generous upside target.




The German DAX is a major player in the I-fund and it has just gotten back to even for the year after breaking out earlier in the week.




The AGG (Bonds / F-fund) pushed back from the top of the flag, and it is now being held up by the 20-day EMA with the bottom of the flag being the next level of support.




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. Have a great weekend!

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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