Despite selling off initially, the S&P 500 turned smartly and ended the trading day by gaining about 40 basis points in value. This occurred as all sectors except for telecom and utilities gained ground. However, the sell off in the dividend rich sectors appears to be incoherent with the message that the debt-ceiling debate will be settled shortly. At the very least, this moves in telecom and utilities would seem to indicate that a settlement (which I believe will surely occur) will not lead to lower interest rates. In any event, one day does not make a trend, but is still bears watching.
The price/volume heat map does not confirm or support the positive trading action in equity prices. Demand was rather lack luster with most of the demand side coming in below the 50% demarcation. That said, the supply side was inactive, probably after further signs of Washington deal emerged, and this was enough to push prices higher on the day.
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