TSP Talk Blog

The dollar rallied and that put some pressure on stocks on Wednesday, although the indices were fairly mixed. The Dow lost 8-points, the Transports and small caps were each down about a half of a percent, while the S&P 500 and Nasdaq both rallied. Bonds (F-fund) rallied off its support line, and the I-fund struggled with the dollar up on the day.

Daily TSP Funds Return More returns

The biggest mover yesterday may have been the yield in the 10-year Treasury, which sent bond prices higher. I have the BND chart way down below, but as you'll down see below, it did bounce off of that prior low with authority. Meanwhile the negative reversal in this TNX 10-year yield did produce at least a temporary peak. Support is down below 1.0% so there may be a green light for bonds for a couple of days.




Other than that it was a fairly slow day with just modest moves with mixed results depending on the index. The S&P 500 held at key support again, but other than that, there's not a whole lot going on that we haven't seen day in and day out recently.

Next Monday is MLK Jr.'s Day and the stock market and the TSP will be closed so the TSP will not be processing transactions that day. Any transactions made between 12 noon ET, on Friday and 12 noon on Tuesday, will be processed COB on Tuesday.

---

The S&P 500 (C-fund) is still hanging in that small bull flag, which is obviously a bullish formation, and it has now closed above that old resistance line for 5 straight days so it's hard to say that it isn't an official breakout. It hasn't exactly bounced off that line yet so there is something holding it back, so if the bears have any plans to push this down again it may have to be now, or they'll miss their chance.




The DWCPF (small caps / S-fund) did something yesterday that it hasn't been doing much of, and that is closing near the bottom of its daily range. Yes, we saw that during the normally bullish Christmas week - go figure, but other than that, many of the down days over the last two months have closed well off the lows of the day. But not yesterday.




The EFA (I-fund) was down with pressure from the rallying dollar. The support line continues to hold, however.




The Volatility Index came down yesterday and looks to be ready to test that rising support line one more time.




BND (bonds / F-fund) had a big day as support did hold at the October low. There is a big overhead gap that could be an upside target, and of course there's quite a way to go to get back to the top of that 4+ long range.




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: www.tsptalk.com/plus.php

For more info our other premium services, please go here... www.tsptalk.com/premiums.html

Thanks for reading. We'll see you back here tomorrow.

Tom Crowley


Posted daily at www.tsptalk.com/comments.php

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.