TSP Talk Blog

The new week started with some downside action that accelerated as the morning wore on. The Dow was down 130-points at the lows before the dip buyers showed up yet again. Much of those morning losses were erased leaving only modest losses in the Dow (-54-points) and S&P 500 (-0.22%), but the Nasdaq took more of hit dipping 0.88% on the day.

Daily TSP Funds Return More returns

The day's range in the indices was wider than its been in a while, and we did see a sharp intraday spike in the VIX, but it settled down to close only slightly higher.

North Korea continues to ruffle feathers and that was a part of the reason for the selling yesterday but rotation is the word being used on Wall Street as investors dump the old leaders in favor of the early 2017 laggards.

Large tech stocks took a hit on Monday while oil made a 5-month high, which is helping the beleaguered energy sector to its highest level in several months.



Small caps and the Transports are two more example of lagging indices that have been leading on the upside of late.


The SPY (S&P 500 / C-fund) was down modestly yesterday but it came back from those steep morning losses by the close. If you look closely you'll see that Monday's lows filled that one small gap opened on September 12. Of course the big gap is still open and could take a little more time before we see things head that way, but it is a draw.




The small caps of the Russell 2000 finally made a new intraday high yesterday, although it closed just below the highs made in July. We did get another one of those spinning top candlestick formation, which are usually signs of an impending reversal, and the one on the S&P 500 on the 18th did mark a turn for the large caps.




The Dow Transportation Index posted a positive reversal day as it seems to want to test those old highs. But its clearly come a long way without and pullbacks so support is getting thin.




The EAFE Index (I-fund) was down on the day as the dollar rallied about 0.60% putting a lot of pressure on the overseas market prices.




The AGG (Bonds / F-fund) rallied nicely and the strong support held and it is now reaching for the overhead open gaps, the opposite of the stock charts which hit resistance and need to fill open gaps below.




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.