Things were fairly quiet in the early morning. Concerns over European debt continue as there was a lack of any EU quantitative action today. Also on the debt front, both Fitch and Moody's commented on the potential deterioration of the U.S. fiscal position given the extension of the tax cuts without any offsetting measures. Bond yields were rising, commodities under pressure. There was no economic data to review before the open.
The midweek session began without a significant gap. Choppy trade at the open quickly put the high of the day on the chart just fifteen minutes in. But sellers quickly arrived and the index thrilled the bears with a sharp move lower that established the low of the day at 10:42 am. The rest of the session was choppy but upward as the intraday high was tested just before the close.
The midweek session began without a significant gap. Choppy trade at the open quickly put the high of the day on the chart just fifteen minutes in. But sellers quickly arrived and the index thrilled the bears with a sharp move lower that established the low of the day at 10:42 am. The rest of the session was choppy but upward as the intraday high was tested just before the close.
For the SPX Index there were 240 Advancers/207 Decliners. On the NYSE 3,134 issues were traded with 1,181 advancing issues and 1,860 retreating issues, a ratio of 1.57 to one declining. There were 125 new highs and 28 new lows. The five day moving average of New Highs is 199 while the five day moving average of New Lows is 15 and the ten day moving average of Net Advancing is 257. The Net Advancing data indicates a bullish trend.
Advancing volume was higher at a ratio of 1.53 to one. The closing TRIN was 0.41 and the final tick was -357. The NYSE Composite Index gained 0.14% today while the SPX gained 0.37%.
For the NYSE, relative to the previous 30 session average, volume was 5.08% above the average. Of the last 15 sessions 7 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 19 sessions ended on a positive tick, 7 of last 10. For the SPX, the day's volume was 100.1% of the average daily volume for the last year. Volume was 106.9% of the last 10 day average and 59.8% of the previous day’s volume.
Breadth was negative on the NYSE but advancing volume was stronger than breadth. New Highs were extremely weak for a session which had the 52 week closing high. Overall, the NYSE breadth is not what you’d expect to see from a market at 52 week highs.
Total tick for the day was -119,000 and the average tick for the day was -77. There were 27 ticks greater than 600 and 104 ticks more extreme than -600. There were no ticks greater than 1000 and 2 ticks more extreme than -1000. The tick action suggests institutional distribution.
The intraday volume patterns leave us without any comment tonight. Looking at the nightly breadth indicators we find them pretty mixed as well, suggesting choppy waters ahead. But we do find it curious that the McClellan Oscillator was negative today, on an up day.
Advancing volume was higher at a ratio of 1.53 to one. The closing TRIN was 0.41 and the final tick was -357. The NYSE Composite Index gained 0.14% today while the SPX gained 0.37%.
For the NYSE, relative to the previous 30 session average, volume was 5.08% above the average. Of the last 15 sessions 7 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 19 sessions ended on a positive tick, 7 of last 10. For the SPX, the day's volume was 100.1% of the average daily volume for the last year. Volume was 106.9% of the last 10 day average and 59.8% of the previous day’s volume.
Breadth was negative on the NYSE but advancing volume was stronger than breadth. New Highs were extremely weak for a session which had the 52 week closing high. Overall, the NYSE breadth is not what you’d expect to see from a market at 52 week highs.
Total tick for the day was -119,000 and the average tick for the day was -77. There were 27 ticks greater than 600 and 104 ticks more extreme than -600. There were no ticks greater than 1000 and 2 ticks more extreme than -1000. The tick action suggests institutional distribution.
The intraday volume patterns leave us without any comment tonight. Looking at the nightly breadth indicators we find them pretty mixed as well, suggesting choppy waters ahead. But we do find it curious that the McClellan Oscillator was negative today, on an up day.
In the precious metals some short term technical damage was done to the gold chart but the primary long term uptrend remains intact. Traders with a short term perspective will act accordingly while longer term oriented investors will also take note and look to establish positions in the direction of the primary trend.
The HUI experienced a bearish engulfing pattern on its daily chart yesterday and that is leading to follow through selling today in the mining shares. Watch the support levels closely and see how the shares act as they move into this region especially if you are acquiring for the long term. The HUI has remained above the 40 and 50 day moving averages since August of this year on an end of trading session basis. Should it move down into this region again and refuse to breakdown, you will know what to do.
There is a band of congestion support in silver coming in near the 26.75 – 26.45 level. From a technical perspective we would not want to see it violate 25 to the downside.
Good technical action in Silver would be for it to hold above the recent breakout level near 27.90 and work sideways for a while.
The trend is your friend in the metals.
The bond market has gotten beaten up (long TBT). I am sure that is not making the Fed officials very happy especially considering the huge sums of money that they have spent in artificially trying to push rates lower on the long end of the curve.
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