Another new high
                         
Stocks rallied strongly again yesterday, keeping the remarkable resilient uptrend going.  The Dow gained 84-points.

For the TSP, the C-fund was up 0.91%, the S-fund gained 0.76%, the I-fund jumped 2.48% with the help of a weak dollar, and the F-fund (bonds) slipped 0.02%. 

The S&P 500 is right back in the meat of the ascending trading channel.  This support and resistance has been quite strong for a narrow range.  Who wants to fight this?  Oh, it will end eventually, but we don't know if that will be today, or a month or more from now. 

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

The dollar's recent rally has run into resistance after testing the late November / early December high.  I don't know if this is going to be a new trading range (78.75 - 81.50) or if this is a failed bull flag breakout, or just a temporary pause before a new leg higher is made.  All I know, is that the I-fund is at the mercy of this chart as we have seen from the recent volatility in that fund.

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

We've gone over the indicators that are giving us something to worry about several times now, but the market does not seem to care.  This battle between negative indicators and the trend continues and those of us who may be sitting on the sidelines waiting for a good entry point, are just going to have to wait.  Chasing might make us some money, but I just hate to do it.  Patience usually pays off, but I just have to go back to that 2006 chart to remind me that the wait may be longer than I can stand. 

Thanks for reading!  We'll see you tomorrow.

Tom Crowley