Wednesday, November 6, 2013

Supply Expands- S&P 500 Price/Volume Heat Map, Nov. 5

Traders tried hard yesterday, but the S&P 500 finished off on the trading day, falling by nearly 30 basis points in value. This was despite the market trading almost flat versus the closing price on Nov. 4, primarily due to a late-day sell off. Remember, the 15 minutes after the market's open and 15 minutes before the close are usually the stomping grounds of the large institutional investors, and late-day action yesterday suggests institutions were not in the mood to buy.


The supply/demand dynamics in yesterday's trading largely reflects the mood set by the price performance. Supply came into market, representing an expansion of sell-side sales pressure versus previous trading days. That said, the staples sector saw strength in trading. A risk trade maybe?




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