Wednesday, June 5, 2013

6/4 Trading Day Price/Volume Heat Map

After being up briefly in early trading, the S&P 500 closed down by 60 basis points, essentially selling off through out most the day. Financials, healthcare, and energy led the decline with declinations of 90 basis points, 60 basis points, and 80 basis points, respectively.


I would also note that volume levels have been picking up to the downside in recent trading sessions. This has been the pattern since November of last year. Anemic upside volume, or at least lower than average volume levels seen when prices turn up, is countered with surges in volume when prices decline. I think this is largely reflected in the Price/Volume Diffusion Index, which has been flipping between the mid 60's and the low 50's demarcations for months.

Looking at the Price/Volume Heat Map, it appears to largely confirm the price changes in the sector groups. Financials and energy show outsized downward moves relative to gainers. This is in contrast to the better performing sector groups, including telecom, staples, materials, and utilities, all showing more 'blue' indicating stronger price/volume moves. Interestingly, the discretionary stocks appeared to be stronger on a price/volume basis than is apparent in the sector group's price change.





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