TSP Talk Blog

Stocks were mixed again on Thursday and mostly flat, although the Nasdaq had a modestly lower day. The Dow led the way again with a 45-point gain while we saw small losses in the S&P 500, the small caps, and the Transports. The dollar was down helping the I-fund to a modest gain.

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The action remains quiet as we head into the latter half of September which, if you look at the chart below, shows just how much headwind the market could face. Yes, the market has been in a bull market and not every September is negative, but stocks may be swimming against the current for the next couple of weeks.


Chart provided courtesy of www.sentimentrader.com


The SPY (S&P 500 / C-fund) is hitting a little resistance, although nothing serious, and it could be a form of an "F" flag which could drift higher along the bottom of that resistance. But that open gap is still looming below at 247 and a test of the 20-day EMA would kill two birds with one pullback.




The DWCPF (small caps / S-fund) was down slightly as the upside momentum slows , which is not unhealthy. For now, the rising trend continues off the August lows, and that is the key - for the rising support to hold.




The Dow Transportation Index was down slightly but like the other indices, it is probably due for a little rest after rallying over 500-points in less than 3 weeks.




The EFA (EAFE Index / I-fund) just about filled its first open gap but the weakness in the dollar helped it reverse to the upside and close near the highs of the day.




The AGG (Bonds / F-fund) reversed with the dollar as it opened lower and closer higher creating a positive reversal day. Technically, that old support line, now broken, could act as resistance.




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


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