Wednesday, December 18, 2013

Mirror, Mirror- S&P 500 Price/Volume Heat Map Dec. 17

I am unsure if we need a lot of rhetoric and details here. For one, volume and activity is beginning to slow, partially as a result of the approaching Christmas holiday. Second, many if not most traders, investors, and the markets as a whole sit on their proverbial hands awaiting the 'results' of the Fed's December meeting. This leaves us with a lot churn, but in the end signifying noise.

Just look at the price/volume heat map in regards to last Friday's (Dec 13th) heat map. In a way, they are largely reflections of each other. On Friday, the market gained with a lack of demand support, and yesterday the market fell on an overall lack of supply. That said, potentially Earth moving faults may be ready to slip under the proverbial crust of the market of here. So far Q4, negative preannouncements outpace positive guidance by a factor of about 11-to-1. This while we see warnings concerning medium term earnings growth (see Hussman's latest commentary) all the while the economic growth remains tepid at best.

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