TSP Talk Blog

Stocks opened sharply lower again on Thursday but we finally saw buyers step up, and we actually saw some green a few times during the day, but by the close the bears pushed the indices into modestly negative territory. The Dow lost 40-points while bonds were down fairly sharply.

Daily TSP Funds Return More returns

The S-fund had a small 0.14% decline and the I-fund paid a little catch-up and lost 0.82% with the dollar rebounding.

The SPY (S&P 500 / C-fund) was forming a very nice positive reversal day on Thursday, but the less than exciting close leaves it a little more in limbo. We may have seen the low, but if the bulls were able to push the S&P 500 near the day's highs into the close, it would look a lot better. Just in case it has a desire to resume the downside, there is an old open gap down near 201.


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

The longer-term chart show that the rising support line did not hold intraday on Friday, but the SPY was able to close above it.


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

The Wilshire 4500 (S-fund) is in the middle of a rising trading channel but it did temporarily break below a more recent rising support line - although it did close above it, and remains above the 50-day EMA.


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

The EFA (EAFE Index / I-fund) nearly filled that large gap left open last week, and in the process opened another smaller gap. So far so good for the fund that been in a bear market for several months. No damage has been done technically during this recent pullback.


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

The Transportation Index is in a key spot flirting with multi-month lows and the 200-day EMA. If the bull market in stocks is going to continue we would need to see this hold at these key support levels.


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

The AGG (Bonds / F-fund) has broken its recent short-term rising trading channel. Ihe fact that it did that before testing the old high could mean bonds (and the F-fund) are getting weaker.


Chart provided courtesy of www.stockcharts.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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