Wednesday, November 20, 2013

Another Down Draft, But- S&P 500 Price/Volume Heat Map For Nov. 19

Another day, another take down of equity, albeit marginal as the S&P 500 lost only about basis points in value. Additionally, overall downside volume has been relatively weak. This while my Price/Volume Diffusion Index not only has remained above the 50 demarcation, but has gained in recent weeks. I have not shown this publicly but the index has gained into the low-to-mid 60's level, suggesting that equity prices may still go higher.


Additionally, the price/volume heat map has shown mixed supply-side dynamics in the last two trading days. Trading days where prices declined. Although I remain bearish overall, the setup we are looking at just does not suggest to me any significant propensity to sell by traders or investors. At least not yet. This despite a still weak economy.



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