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Small caps lagging again

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There were small to moderate losses in stocks yesterday as the Dow lost 2-points, the S&P 500 fell 3, while small caps and the international stocks lagged posting larger losses.


Daily TSP Funds Return

The Fed minutes were released and you can see in the Dow chart above where Fed Chairman (or is it chairperson?) Janet Yellen made a few comments. Bonds were down.


The SPY (S&P 500 / C-fund) continues to flirt with the resistance of the neckline of the inverted head and shoulder pattern (red.) If the head and shoulders is going to form, the right shoulder should be starting soon, but we've said that for two-weeks now and so far the bulls have refused to relent.


Chart provided courtesy of www.stockcharts.com, analysis by TSP Talk


The Wilshire 4500 (S-fund) lost 0.57% yesterday showing more signs of a rounded peak, but since it is above the 20, 50, and 200-day EMA's, we should probably give the bulls the benefit of the doubt for now.


Chart provided courtesy of www.stockcharts.com
, analysis by TSP Talk


The Russell 2000 did fall below the 20-day EMA but was able to close just above it. There's an interesting support line in the form of the neckline of its descending inverted and and shoulders pattern.


Chart provided courtesy of www.stockcharts.com
, analysis by TSP Talk


A longer-term view shows the Russell 2000 close to the middle of the large sideways trading channel it has been in all year. The key short-term support levels are between about 1142 and 1152.


Chart provided courtesy of www.stockcharts.com
, analysis by TSP Talk


The
EFA (EAFE Index / I-fund) was down but remains above the 50-day EMA and is getting squeezed in a possible rising wedge. Rising wedges tend to break down, but the EFA has been a little flaky lately and either way wouldn't surprise me.


Chart provided courtesy of www.stockcharts.com
, analysis by TSP Talk


The German DAX broke above a bull flag earlier in the week and it is now testing the 200-day EMA. There was a negative reversal day created yesterday triggered at the 200-day EMA, so this looks like it wants to go down today.


Chart provided courtesy of www.stockcharts.com
, analysis by TSP Talk


The AGG (Bonds / F-fund) was down and is again testing the 50-day EMA. Do or die time for bonds?


Chart provided courtesy of www.stockcharts.com
, analysis by TSP Talk


Read more in today's TSP Talk Plus Report. We post more charts, indicators and analysis, plus discuss the Sentiment Survey Results and 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 TSP Talk Market Commentary

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.

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