Thursday, January 23, 2014

Calm Before the Storm- S&P 500 Price/Volume Heat Map Jan 22

With the benefit of hindsight, it appears that yesterday's trading was the proverbial calm before the storm. Through about mid-day, the S&P 500 is off about 90 basis points versus the less than 10 basis point gain. With just the modest increase in the market, most the sector groups performed benignly. That is outside of the materials group.

Looking at the price/volume heat map from yesterday's trading, demand and supply remained subdued overall. That said, many of the larger names in the materials (like Dupont, Monsanto, Freeport Mac for example) all fell on volume, leading to an increased supply reading for the group. Yesterday's trading seemed tilted against all materials, supposedly on negative sentiment towards the Chinese economy. Strangely enough though, the energy complex gained on higher demand levels, probably helped by the cold weather seen across the U.S.

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