Monday, December 16, 2013

A Benign End to Weak Week- S&P 500 Price/Volume Heat Map Dec. 13 Trading Day

In the last day of last week's trading, the S&P 500 traded essentially flat on the day. This was as most sectors posted, what I would call, mixed price performance results.

Looking at the price/volume heat map, the supply and demand nearly fully reflects the price performance on the trading day. This is as the map suggests more neutral trading on the day with buyers and buyers more or less equalizing against sellers.

Price/Volume Trading Day for Week Ending Dec. 13

Although the week ended on a whimper, the same cannot said the rest of the trading week. First off, the S&P 500 lost 160 basis points in value with no sectors being spared the loss. In fact, the best performing group on the week was materials, which lost 60 basis points in value.

As you could probably guess without letting your eyes wander, the price/volume heat map indicates a market that was ruled mainly by sellers and supply. In fact, demand was almost nonexistent in the latest week. Looking more broadly, the downtrend on the week is worth noting as it marks a price failure after equity prices tested the highs. Additionally, the volume expanded on the downtrend. That said, the volume expansion was not particularly strong and we may once again restest the highs.

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