TSP Talk Blog

The Dow gained 8-points yesterday as stocks rallied off their morning lows, but most of the major indices closed down on the day with the small caps lagging again with a 0.64% loss. The Transportation Index was down, as was the S&P and Nasdaq after the disappointing earnings from Apple.

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Tesla and Facebook reported earnings after the bell on Wednesday and may be a drag on the Nasdaq again as the stocks moved lower in after hours trading.

We saw some of the open gaps on the charts get partially filled yesterday, but they are still open.

We saw an interesting plunge in copper yesterday after a nice rally off the April lows. But it remains in a downtrend and whenever the price of copper is falling, questions about the strength of the economy surface.




We get the April Jobs Report on Friday morning and estimates are looking for a gain of 180,000 jobs and an unemployment rate of 4.6%.


The S&P 500 / C-fund opened lower yesterday and nearly filled it's top open gap, but rebounded before it was fully filled. The bull flag (blue) is also still intact and the battle continues between that bullish formation, and the lure of those open gaps below.




The DWCPF (S-fund) almost filled its second gap and some may say that's close enough. The DWCPF is not a widely followed index so the chart formations are not quite as meaningful, but an open gap is an open gap, and the market tends to like to get them filled before moving on.




The Dow Transportation Index was down sharply early on Wednesday, but bounced back with the other indices closing down 0.23%. It remains barely below the 50-day EMA, in a descending channel, and in a large bear flag.




The EFA (EAFE Index / I-fund) continues to float near the top of its large rising trading channel.




The High Yield Corporate Bond Fund continues to trade well and seems to be in an "F" flag right now. "F" flags can go on for some time, but once they break, they tend to be to the downside, and rather sharply, and that open gap would be a downside target if the March high does not hold as support.




The AGG (Bonds / F-fund) traded within the range of its bear flag, which is a bear flag, and they tend to break down.




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Thanks for reading. We'll see you back here tomorrow.

Tom Crowley


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