TSP Talk Blog

It was a slow day on Wall Street Thursday in front of earnings season, which unofficially kicks off today with a couple of big banks reporting. Most of the induces were flat as the Dow dipped 14-points and the S&P was up a fraction. The Nasdaq lagged a bit and small caps were up a few ticks. A late morning dip was triggered by the ECB who said they may offer banks negative interest rates to borrow as a desperate measure to stimulate inflation.

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Not much changed in the last 24 hours, and even the JP Morgan Chase and Wells Fargo earnings report today may not do too much in this dull, but resilient market. Next week will be a big one for earnings and perhaps we'll see some movement and resolutions to some charts that are hovering near some key resistance lines.

Oil was down so again it was stocks or oil leading the other.

Stocks are trying to come off some overbought levels, and investors are not surprising on the overly bullish side, and while this is something the bears usually eat up, the have shown no interest yet in going to work in this environment. Perhaps they will pounce on disappointing earnings next week, unless the earnings and the bulls are not ready to give them any fodder.

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The S&P 500 (C-fund) was flat in front of Friday earnings reports. The trend is up, but things have quieted down. This is either the bulls holding back and building strength for their next move, or else the bears are starting to put some pressure on.




The DWCPF (S-fund) was up slightly poking its head above the February / April highs.




The price of oil dipped down and that seems to put pressure on the stock market when it happens. But it has been flying high along with stock for the last 3-months.




The Dow Transportation Index is up against some resistance, but it has been creating a nice little bull flag of late.




The EFA (EAFE Index / I-fund) has been moving sideways for over a week now and this may also be considered a bull flag.




The High Yield Corporate Bonds made another new high as the relentless rally continues. It poked above some resistance and it is either overly stretched, or it wants to go into another gear and steeper incline higher.




The AGG (Bonds / F-fund) slipped below that support line it had been hugging for several days. Bonds don't tend to do what I think they might, but if you ask I'd say that 108.00 area may be a target.




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Thanks for reading. Have a great weekend!

Tom Crowley


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