View RSS Feed

TSP Talk Blog

Early dips continue to be bought

Rate this Entry

Stocks opened lower on Tuesday but after an early battle, the bulls were able to push the large cap indices into the green and hang onto some small gains into the close. The Dow ended the up 39-points but small caps closed just south of even.

Daily TSP Funds Return

The price of oil rallied to a key level that we had been talking about, and you will see in the charts below. This is important to the market because of its impact on the market leading Transportation Index, which has been struggling.

This Friday we will get the March Jobs Report and estimates are looking for a gain of about 180,000 jobs and an unemployment rate of 4.7%.

Admin Note: If anyone is interested in a free Master's Golf Tournament Pool, please click here for more info.


The SPY (S&P 500 / C-fund) rallied from early losses to close above the 20-day EMA again on Tuesday - something the bulls seem determined to do. The descending resistance line has been stubborn, but that line also happens to be part of a possible small bull flag.




The DWCPF (S-fund) tested and held at the 50-day EMA again so the bulls are still willing to buy the dips for now. But the chart is flirting with a possible lower high here after a failed breakout above the descending trading channel. If the small cap dip buyers show up here, we could be seeing the right shoulder of an inverted head and shoulders pattern forming.




The Dow Transportation Index closed with a small gain after a weak morning, and some of that late strength had to do with the price of oil rallying to $51 a barrel. We have another possible bull flag forming, but it's below resistance and in a downtrend so it could turn out to be a lower peak.




The price of oil closed right on the $51 area that we have noted as being an important area for the oil bulls... and the Transportation Index.




The EFA (I-fund) was flat but closed near the intraday highs after successfully testing the 20-day EMA again.




The HYG High Yield Corporate Bond Fund has been forming a bullish flag since it made a higher high last week. This looks fairly bullish, and if it can breakout to the upside as bull flags do, I would suspect stocks could follow.




The AGG (Bonds / F-fund) was down slightly after the big day on Monday. There seems to be some room to run on the upside before hitting the resistance near 109.




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


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 "Early dips continue to be bought" to Digg Submit "Early dips continue to be bought" to del.icio.us Submit "Early dips continue to be bought" to StumbleUpon Submit "Early dips continue to be bought" 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