Wednesday, January 22, 2014

And Its Back- S&P 500 Price/Volume Heat Map Jan 21

After a brief hiatus, the price/volume heat map for the S&P 500 heat map is back. Again, I took I took some time off to recharge, go on vacation, spend time with family, do a half marathon, etc. It was an enjoyable time. Now however, it is time to get back to work. I may (probably at some point) update you for the heat maps I missed over the break, but for the time being I have to get back to business and look at the present and future.

With all that said, the market gained a bit in yesterday's trading, as volume levels were rather benign. In all, the S&P 500 looks to be in a continuation pattern to the upside, a trend I expect to continue as long as we continue to break new highs and absent any significant sign of weakness. That said, any long-term reader will know that I remain bearish overall and think that the market remains poised for a significant setback.

The following is the latest performance results for the S&P 500 and subsequent sector performance.

Turning to the heat map, overall demand was generally weak sans gains in the utilities sector. Utility shares gained as treasuries extended their recent downturn. Both the trend in utilities and treasuries appear to be stuck in a trading range. Utilities specifically look weaker in the current uptrend that began at the beginning of the year. Without any breakout above the $39.20 price level on the XLU (Utility spider ETF), the sector group will likely stay in a range. More so, many on street are playing a contrarian trade of being bullish treasuries. For instance, here.

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