Friday, November 1, 2013

The Beatings Continue Until Moral Improves- S&P 500 Price/Volume Heat Map Oct. 30 Edtion

We saw a follow through day with the weakness seen after the Fed's announced the (non) results of its October meeting. That said and despite the market closing lower, trading was volatile throughout the day, as equity prices traded at one side or the other of the zero demarcation most the of the trading day. Weakness and supply did gain control late in the trading day (the stalking grounds of institutional investors) and the S&P 500 finally closed off nearly 40 basis points in weakness across most sectors.


Although prices were generally weak, the price/volume heat map does not suggest that the supply dynamics exhibited ubiquitous trends across all sectors. First, the weakness seemed concentrated in roughly three groups, i.e. staples, energy, and financials with weakness defined as more than 50% of the names in the sector showing falling prices supported by volume. More so, the price decline in the market yesterday seemed to result from a lack of demand. In any event, volatility looks like it is picking up here.



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