View RSS Feed

TSP Talk Blog

Large caps pause, small caps pull back

Rate this Entry
The market paused after the big rally on Monday, and smaller gains on Friday. The Dow chopped around and closed up a slight 5-points, and the S&P and Nasdaq were down just slightly. The Transports added onto recent rally, and small caps saw some profit taking, while the I-fund was held back by a rally in the dollar.

Daily TSP Funds Return

The North Korean situation has quieted but civil unrest and political bickering continue to keep Washington from focusing on the tax reform the market is waiting for.

Just a reminder that seasonality gets bit more iffy starting on the 18th. Not that stocks will necessarily go down because of this, but there will be a bit of a headwind for stocks compared to an average two-week period for the market.


Chart provided courtesy of www.sentimentrader.com


The SPY (S&P 500 / C-fund) moved above some short-term weak resistance yesterday, but closed off the intraday highs and settled on that old resistance which could now become support. The 20-day EMA also held as support yesterday, while the 50-day EMA has been a wall of support for months.




The DWCPF (small caps / S-fund) lagged yesterday giving back about a third of Friday and Monday's gains. There's now an open gap (red) above and below the current level, but you can see that the top of that descending trading channel stopped it in its tracks the last couple of days.<




The Dow Transportation Index closed higher and above the 50-day EMA for a 2nd straight day, but also tested and stopped at the top of that flag that we've been watching.




The EFA (EAFE Index / I-fund) filled Monday's open gap already and the bottom of that gap seems to be acting as support. Now let's see if it heads toward the two small open gaps above, or if it wants to take on the larger gap near 65.25 first.




The German DAX has bounced nicely off the 200-day EMA but it remains in a nasty descending trend, with one level of resistance holding yesterday.




The AGG (Bonds / F-fund) slipped below a double dose of support yesterday, but there's a chance that it is testing the bottom of a bullish flag formation. This is a pretty mixed signal for bonds.




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 "Large caps pause, small caps pull back" to Digg Submit "Large caps pause, small caps pull back" to del.icio.us Submit "Large caps pause, small caps pull back" to StumbleUpon Submit "Large caps pause, small caps pull back" 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