Despite a gain of 40 basis points, we are seeing weakening demand dynamics underlying the gains. This is total volume levels tail off as equity prices move into higher, high territory. I continue to think that the S&P 500 will move into a range around 1,776, but think the demand dynamics underlying the recent advance suggests, at the very least, a consolidation of the gains.
As stated above, the demand dynamics of the price/volume heat map came in on the weaker side, albeit still surpassing any signs of supply. We will have to see just how long the market can continue to rise without volume support.
For the week ending Oct. 25
For the latest ended week, the the S&P 500 gained about 90 basis points in value, mainly on the heals of the gains in discretionary and industrial stocks. As for the price/volume heat map, the weekly run provides a better backdrop than the daily view above.
For the week ending Oct. 25
For the latest ended week, the the S&P 500 gained about 90 basis points in value, mainly on the heals of the gains in discretionary and industrial stocks. As for the price/volume heat map, the weekly run provides a better backdrop than the daily view above.
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