TSP daily charts as of 10/23/2016

Trying to find some signs of life from these charts is almost like watching paint dry.

The S&P 500 ended the week to the upside but if you just look at the last 5 bars of the chart we look flat. We are and have been close to the 50 day moving average, so with just a slight move to the upside we could get a buy signal. Volatility appears to be trailing off which normally leads to higher prices. The one thing that is concerning is the DMI index at the bottom of the chart is still screaming for lower prices. If the Green line of the DMI is below both the Red and Blue line, we are in a solid down trend mode. We have been in this mode since September 9th. Looking back at that date one thing does show that $2125.77 is holding as support and we do not have a close below that level. Remember I said close below that level because we have traded below that level. I think if that continues to hold, we may have found a low for now and I would a expect prices to soon begin to rise.

 

The Small Cap was also mostly flat last week and is almost a replica of the S&P 500 but just a little behind. I think the level of support to watch here is $1062.43. A close below that level could be an indication that we are not done going lower.

 

The International index is showing some signs of life with a little life in rising prices. It is way to early to tell if this will hold, so we watch.

 

Bonds are closing in on the 50 day moving average and at the same time a daily buy signal. Looking back at the recent past you can see that 3 times before we had signals that looks exactly like the one we have here and they all failed. I think if price can get above the 50 day ma, CBL and through the top of the down channel in blue it might endorse a new uptrend. The DMI index at the bottom of the chart also seems to be turning but to early to tell today.

 

Conclusion: Not much happened last week except for the impression that we flattened out. Is this the bottom and from here prices start to rise? We shall see how it plays out. I did give you some levels to watch.