Thursday, September 5, 2013

A Sign of Demand- At Least In the 9/4 S&P 500 Price/Volume Heat Map

After about a week without any sign of demand, we saw a reversion to the mean of sorts, at least as the price/volume heat map and the price of equities are concerned. The S&P 500 ended yesterday's trading day gaining about 80 basis points of value on a wider price spread day. All sectors gained except the utilities group.

Excluding utilities, which continues to show signs of increased supply, all sector groups and the market as a whole saw an increase in demand, as it is projected in the price/volume heat map. That said, the overall volume levels on the market were weak, coming in below recent rolling averages and the volume levels on downtrend days. I think today's move was nothing more than operators pulling in traders to get out of positions and a retest of higher prices. I continue to believe the the June swing point below 1,600 remains in play. That notwithstanding, the increase in demand may suggest the market may have a few points to the upside left in it.

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