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Fed gets more hawkish

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The Fed increased the Fed Funds rate by 0.25% as expected, but the twist was that they had a more hawkish outlook this time around, and the odds are now looking like another possible two rate hikes this year. Two was a possibility but it has now become more likely, and that seems to be what the late selling was responding to.

Daily TSP Funds Return

The Dow lost 120-points on the day, which is minor considering what it has done over the last few weeks, but the intensity of the selling into the close could roll into Thursday since we did see a negative outside reversal day pattern. The indices had gotten quite extended so this may just be an excuse to digest those gains.

The Nasdaq and tech held up well considering, but let's see how this news sinks in for the rest of the week before claiming they are unscathed. Small caps fell in line with the percentage losses in the Dow and S&P 500.

Reminder: I'm going to be in and out of the office over the next couple of weeks [starting 6/7], doing some traveling. I will be checking emails and posting premium alerts as usual, and I will posting something here everyday, but it may be quick updates and my timeframes may be off a little.

Admin Note:
If anyone is interested in our free annual U.S. Open Golf Tournament Pool, please click here for more info. Deadline is the first tee-time on Thursday morning.

The S&P 500 / C-fund hit the overhead resistance again and backed off creating a negative outside reversal pattern. There is some support just below yesterday's lows, but there is also a small gap still open near 2740, which is adjacent to the bottom of the blue rising wedge pattern.

The AGG (Bonds / F-fund) filled another one of those open gaps yesterday after the Fed announcement leaving just one more open gap near 105.10.

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:

Thanks for reading, and thanks for your patience over the next couple of weeks while I'm out and about. We'll see you tomorrow.

Tom Crowley

Posted daily at

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S&P 500 (C Fund)
DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)
EFA (I Fund)
iShares MSCI EAFE Index (EFA)
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)