At the of the trading day yesterday, the S&P 500 increased in value by about 50 basis points. That said, total volume on the upside has been trailing off on the upside. Additionally, the volume comparisons do not suggest any strength in this move.
Interestingly enough, divergences are appearing in a number of the indicators I follow. The relative cyclical/non-cyclical price has not confirmed the recent up turn in equities. Neither has the weighted average standardized VIX or VIX skew. My Price/Volume Diffusion Index is also in decline. However, high beta stocks are outperforming their lower risk brethren while junk bonds are outperforming investment grade bonds. For the moment, I am overweighting the message in the VIX data and price/volume analysis and keeping my negative stance on equities.
Turning to the heat map, financials and discretionary stocks exhibited mixed price/volume characteristics relative to the price performance. More so in the financial names. Energy and Staples showed strength. Utilities, following a few days of negative price and price/volume results, snapped back.
Interestingly enough, divergences are appearing in a number of the indicators I follow. The relative cyclical/non-cyclical price has not confirmed the recent up turn in equities. Neither has the weighted average standardized VIX or VIX skew. My Price/Volume Diffusion Index is also in decline. However, high beta stocks are outperforming their lower risk brethren while junk bonds are outperforming investment grade bonds. For the moment, I am overweighting the message in the VIX data and price/volume analysis and keeping my negative stance on equities.
Turning to the heat map, financials and discretionary stocks exhibited mixed price/volume characteristics relative to the price performance. More so in the financial names. Energy and Staples showed strength. Utilities, following a few days of negative price and price/volume results, snapped back.
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