Tuesday, August 13, 2013

S&P 500 Price/Volume Heat Map- 8/12 Trading Day Edition

Another relatively slow day in trading, as only 68.6 million shares traded hands on the SPY or the S&P 500 SPDR ETF. With the slow trading, the market listed between slightly positive and negative, but closed off by about 10 basis points. The low trading volume environment, partially due to summer vacation schedules and the like, creates a tough environment in which to discern any directional price/volume indications. That said, the inability for the market to catch a decent bid at highs is telling in of itself. Especially when the low trading volume environment is married with fundamentals that include abnormally high profit margins, high valuations, overbought conditions, and a low growth/higher recession risk economic environment.


Turning to the the price/volume heat map, the supply/demand dynamics for the stocks in the S&P 500 showed a neutral to negative bent, with telecom experiencing the most positive demand aspects.


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