Yet again, the S&P 500 logs in another day of falling demand. Lower demand in last Friday's trading led to an across board decline across the ten sectors, most acutely felt in materials, and an overall decline in value of about 40 basis points. The outstanding performance on the day, if one can call it that, came from the discretionary and healthcare groups, both of which ended the trading day flat.
Without even looking you could probably guess what the price/volume heat map looks like. We saw a heavy weighting towards the supply side of the spectrum, a continuation of what has occurred for many trading days now. I continue to expect but not necessarily forecast some sort of snap back at some point soon. We just don't see such one-sided moves continue without some sort of reversion to the mean or counter trend move. Additionally, total volume levels to the downside here have been weaker than average and are decelerating. I would not rule out a sharp reversal once the US Congress continues spending beyond their (our) means.
For the week ending 9/27
It should also be of no surprise that for the week, the S&P 500 closed down on weak demand trends.
For the week ending 9/27
It should also be of no surprise that for the week, the S&P 500 closed down on weak demand trends.
No comments:
Post a Comment