Monday, August 12, 2013

S&P 500 Price/Volume Heat Map- Trading Day/Week Ended 8/9

In last Friday's trading, the S&P 500 closed off by about 40 basis points in value. This was as all sectors declined in value on a price basis, with utilities leading the way down, but tech exerting the most force, as the sector carries a nearly 18% weight in the index.


Turning to the heat map, no sector exhibited any relative strength, confirming the price declines on the trading day. The most demand weakness (or increased supply depending on your perspective) came out of the utilities and telecom sectors. That said, overall market-level volume remain light when compared to trading days past.



Week Ending
For the trading week, the S&P 500 lost 110 basis points in value.


This was as all sectors outside of materials showed a decline in price level, with financials leading the way down. It should be note that the treasury yield, albeit still steep but manipulated, flattened almost 10 basis points on the week. The flattening event likely hurt earnings sentiment for the interest sensitive group. The continued talk of Fed tapering (although it is already occurring) likely hurt the outlook for earnings in financials. The price/volume heat for week reflects this negative market bias, as all sector showed supply outstripping demand. This was also the case in materials, diverging from the overall price action, suggesting a few larger names drove the overall weekly gain in the group despite a negative weighting on supply/demand.






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