In a rejection of the Fed's maintenance of emergency monthly funding for the foreseeable future, the S&P 500 rejected the notion that continued asset purchases will continue to push manipulate asset prices ever higher. After trading higher a good part of the day, the S&P 500 ended fairly flat following an abrupt sell off into the close yesterday. The move was largely predicated on weakness in technology shares, a flat reading in the price change of financials, and offsetting gains and losses on a price basis in the rest of the sectors.
As for the supply/demand dynamics characterized in the price/volume heat map, all but telecom and utilities showed a mixed trading day. For the latter two, the sellers not only won out on a price basis but volume came in on the downside. The price and price/volume dynamic appears at odds with the thesis that QE will push rates on interest bearing instruments lower, as the telecom and utilities equities can, at times, be a substitute for some investors reaching for yield.
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