View RSS Feed

TSP Talk Blog

A pause but Dow hits 20,1000

Rate this Entry

The Dow followed through with some minor gains to push it above 20,100 but most of the other broader market indices were flat to lower on the day. Small caps and the I-fund lagged on a bounce back in the dollar, while the Transportation Index rallied again, but stalled at resistance.


Daily TSP Funds Return


The action was flat as it may have been the battle that I talked about on Thursday - Joe and Jane SixPack were probably buying on the 20,000 news while some more savvy investors may have been taking profits. There's no doubt that President Trump is having an impact in the market with his proposed policies but again, the rally is based on expectation rather than anything concrete so profit taking does make some sense despite the momentum from the bulls.


The SPY (S&P 500 / C-fund) was off a bit and has a small open gap near 228. Gaps on the S&P 500 almost always get filled sooner rather than later, but that was not the case in 2016 where we still have a big open gap all the way down near 208, and although it's not shown here, there's a post Brexit gap still open near 201. Very unusual.




The DWCPF (S-fund) pulled back some but held above the breakout resistance line. There is an open gap and being above resistance, it looks like an obvious short-term target if we see more profit taking in the coming days.




The Dow Transportation Index recouped all of its December pullback but hit the the December high and paused for at least a day. Double tops like this tend to be followed buy some kind of dip, but it doesn't have to last long.




The EFA (I-fund) also pulled back and the 0.66% gain in the dollar yesterday did not help. It broke above a rising wedge pattern, which is not normally the case for rising wedges, and it will now look for the old resistance to act as support. But if that does not hold, the open gaps are still looming below.




The AGG (bonds / F-fund) was down early but stabilized and closed near the highs of the day posting a small gain. The technical picture looks week and it will have to do a lot of work to improve that by pushing back above multiple resistance levels.




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.

Submit "A pause but Dow hits 20,1000" to Digg Submit "A pause but Dow hits 20,1000" to del.icio.us Submit "A pause but Dow hits 20,1000" to StumbleUpon Submit "A pause but Dow hits 20,1000" to Google

Comments


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)

Yahoo Finance Realtime TSP Fund Tracking Index Quotes