Monday, November 11, 2013

Just Bouncing Around- S&P 500 Price/Volume Heat Map for Nov. 8

Retracing almost all the losses from the previous day, the S&P 500 closed out the day ion Friday with a gain of about 130 basis points. All the sectors groups sans utilities gained on the trader/investor euphoria after the release of the latest jobs numbers (more on the latter later). The cyclical groups gained the most with financials up 2.3% and materials gaining almost 2 percentage points.

As you would expect, the price/volume heat map reflects the overalls strong gains, as indicated demand was strong across nearly all sector groups. Utilities and telecom names stand out with more either mixed or negative supply/demand dynamics.

Week Ending Nov. 8

For the latest ended though, we see a entirely different picture, indicated that Friday's strong upside move indicated more churn than anything else when measured on a weekly basis. For the latest ended week, the S&P 500 mustered a 50 basis point gain, on mixed sector results. In fact, if not for the strong gains in financials on Friday, I would surmise the S&P 500 would have put in negative performance. Although coulda, shoulda, woulda never happened, I thought you should be aware that the breadth for the weekly gains were narrow.

More so, the supply.demand dynamics on the week appear mixed. Again, demand in financials stands out. That aside and for the most part, supply and demand were more balanced across the sector groups. However, telecom and utilities saw a large influx of supply.

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