A day of rest
Stocks
took a little break yesterday as the indices were mostly flat to mixed.
The Dow slipped 14-points, the S&P was flat, while the small cap and
Transportation indices were up slightly.
For the TSP, the C-fund was flat, the
S-fund was up 0.19%, the I-fund added 0.15%, and the F-fund was off 0.01%.
The S&P 500
remains overbought like most of the market, and while some charts are
breaking out and getting technically better, we are seeing indications
that a pullback is likely in the coming days.
Chart provided courtesy of www.decisionpoint.com,
analysis by TSP Talk
The Nasdaq continues to outperform as it made a new high yesterday,
breaking out above January's high. The upper end of the ascending
trading channel could act as resistance, but since it is rising, it
doesn't mean it has to come down. But still, look at the run it
has made in the last month and we shouldn't be surprised if some of
those gaps don't get filled soon.
Chart provided courtesy of www.decisionpoint.com,
analysis by TSP Talk
The dollar continues to consolidate, which has allowed the I-fund to
outperform the C-fund so far in March. It does have a bull flag
look to it, but I would expect the pullback to take it to the support
line, or even the 200-day EMA (green line), before making a new high.
Chart provided courtesy of www.decisionpoint.com,
analysis by TSP Talk
With earnings season still a month away, there really isn't anything out
there to stimulate stocks, but we do have a couple of important events
next Tuesday that could be market movers.
Next Tuesday is the FOMC meeting and we will be looking for clues from
the Fed on economic conditions and their plans on interest rates in the
short to intermediate-term.
Also, next Tuesday is the deadline for Greece to show the EU that it is
on track reduce its deficit from 12.7% of GDP, to 8.7%. This
continues to be an important story that could have a large impact on
currencies and the markets around the world.
Thanks for reading. See you back here tomorrow.
Tom Crowley
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