TSP daily charts as of 4/9/2017

Last week was pretty much a grind lower in the markets. Looking technically at the charts, nothing broke down to cause me concern, but nothing broke out either. As of last Friday, this is the 27th trading day of the current bull flag or consolidation. The longer this goes, the more the odds are that it will fail and break to the down side. Let’s look at our daily charts. 

 

So the only thing that is glaring here is that volatility is rising which is an indication that prices will be under stress and should go lower. The DMI is saying nothing. The bukll flag is still holding onto the grind. With the CBL and 50 day ma all merging into one spot, one has to think that some direction is going to happen very soon. Which way is the million dollar question. I’ll be riding it out. 

 

 

The Small Cap is a little bit ahead of the S&P 500 in what it is saying about direction. Price fired another sell warning by falling below the CBL. This warning has been firing on and off for the last 20 plus trading days. Hard to make decision using this tool. The bull flag is still working and worth watching as with the S&P. The real negative here is that the DMI is negative. This has been this way since the bull flag started. Uptrend line is still holding and I will ride this out to until a direction is seen. 

 

 

The International index still looks to be the strongest index we have, but even it is not immune to turn south. After the last 8 trading days, it appears that a bull flag is also forming here. DMI is still positive but is softening. My concern is volatility is rising and this normally downward prices. I will be watching this one a little closer next week to see which direction prices decide to go. I’ll be riding this out also. 

 

 

 Bonds still hovering or lingering around what it has formed as a bottom. DMI and Volatility are positive and one would think that a slow steady uptrend should begin in the very near future. There is no law, rule, or average here on when that might start. So I will wait on the monthly chart to let me know it’s time shift money here. 

 

 

Conclusion: Riding sideways grind is like watching paint dry but all part of the process. Things do not go up forever, sometimes the reverse and sometimes they consolidate and then continue in the direction of the current trend. Time will tell.