I think I am starting to sound like broken record. Yet again, the S&P 500 logged in another day of lower equity prices and increased supply. This time, all sectors posted a decline in value with staples, energy, and financials leading the charge to the downside.
As you might imagine, the price/volume heat map largely reflects the price performance of the sectors. That notwithstanding, You should be aware of a few divergences. First, tech, materials, discretionary, and utility stocks showed more neutral supply/demand dynamics. This is in contrast to the respective sector's price performance. This may not only indicate traders and investors positioning themselves into more cyclical names (i.e. higher equity prices), but also some selling pressure in bonds. The later as traders position themselves in higher dividend paying utilities. More so, traders appear to have rejected the 1,670 (roughly) swing point on the S&P 500, as volume came in at these levels. I would suspect we will see a bounce here, and I am not just saying that because futures are up today.
As you might imagine, the price/volume heat map largely reflects the price performance of the sectors. That notwithstanding, You should be aware of a few divergences. First, tech, materials, discretionary, and utility stocks showed more neutral supply/demand dynamics. This is in contrast to the respective sector's price performance. This may not only indicate traders and investors positioning themselves into more cyclical names (i.e. higher equity prices), but also some selling pressure in bonds. The later as traders position themselves in higher dividend paying utilities. More so, traders appear to have rejected the 1,670 (roughly) swing point on the S&P 500, as volume came in at these levels. I would suspect we will see a bounce here, and I am not just saying that because futures are up today.
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