Not much of a break

It took a late push higher but the Dow closed higher for the 8th consecutive day.  However, most major indices saw modest losses on the day although hardly making a dent in he charts.

                                    
For the TSP, the C-fund lost 0.27% yesterday, the S-fund fell 0.43%, the I-fund gave up 0.33%, and the F-fund (bonds) gained 0.30%. 

The S&P 500 tried to pull back some as it did make a slightly lower high and a lower low.  It looked like it could be the start of a needed pullback, but the dip buyers had none of it and they jumped in during the last hour of trading.

We've talked about the new highs in the S&P 500 and how the yield on the 10-year note has recently broken to the upside, but SentimenTrader.com tells us how rare this action is.

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

-sentimenTrader.com

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

I don't know exactly what this will mean for us this time, because we seem to be in the middle of something very big here.  Bull markets like this don't come around very often and after the 10-year period we had between 1999-2008 - which basically saw no gains for the buy and holders out there - we do not want to miss this rally.  Sitting on the sidelines for the next 6 to 12 months could be a mistake no matter what you think of this market.

If you are going to do some market timing, you better be nimble, and if you are wrong, realize it quickly and don't be left behind.

If this little stock / bond yield trend is going to give us a pullback, embrace it and use it to your advantage.  Buy the dips in a bull market - and certainly any pullbacks to support levels.  If support gives way, then we'll have redefine the market - but until then...

Thanks for reading!  We'll see you tomorrow.

Tom Crowley