Thursday, August 29, 2013

Price/Volume Heat Map (8/28) Remains Weak Despite S&P 500 Gain

Although the market gained around 30 basis points in the value in yesterday's trading, the overall price/volume characteristics does not suggest a large demand surge for equities. In fact, the run up in oil prices to year highs and the the subsequent knock off affect on the oil companies appears as the largest contributor to gains. Absent those gains, the S&P 500 might have put in a flat to down performance.

The price/volume map below shows the dynamics I previously described. We see a large a demand-driven gain in the energy sector, but outside of that the supply/demand balance appears more neutral. Futures trading presently indicate a higher opening, but we will have to see what the rest of the day brings and if operators are just pulling in fresh money before another down leg.

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