Earnings helping
by
, 04-24-2014 at 08:10 PM (1258 Views)
Stocks were mixed yesterday as the Dow ended the day flat- literally, the S&P and Nasdaq were up, and the small caps and Transportation stocks were down. The Nasdaq got a nice boost from a big gain in Apple, but that wasn't enough to keep all of the indices in positive territory.
The I-fund held onto small gains, and bonds were up slightly.
Daily TSP Funds Return
The SPY (S&P 500 / C-fund) was slightly higher but closed well off of the highs, and quite a bit off of the lows. It also produced an outside day - which could be considered a positive outside reversal day. The "kangaroo tail" reversal is normally a short-term positive, but the fact that the SPY did not close near the highs could possibly negate the two normally bullish short-term formations. It did, however, close near yesterday's highs, so that leans it more toward the bullish side.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Nasdaq had a nice day on Thursday gaining 0.5%, but like the SPY, it finished well off of the highs and the lows. The tie here could go to the kangaroo tail, which tends to bring more short-term gains. The 50-day EMA is still an obstacle that the Nasdaq has to deal with, and there is also a resistance line (red) coming into play, so there are some issues.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Transportation Index made a new high in early trading on Thursday but then broke down and actually created a negative outside reversal day despite the kangaroo tail. It closed below Wednesday's lows, and that's usually bearish for the short-term.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The longer-term bonds (TLT) continue to outperform the intermediate-term bonds (IEF) but yields continue to stay low, and that could be a warning sign for the stock market.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
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Thanks for reading! Have a great weekend!
Tom Crowley
Posted daily at TSP Talk Market Commentary
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