Monday morning it looked like the bears were going to have a big day as concerns regarding Europe were driving world markets lower. The problems in Portugal looking like they could be reaching a boiling point. With a big auction in Portugal scheduled for Wednesday (see link below), this issue could come to a head in the next couple days.
The week began with a small gap down. The index quickly shed a total of seven points before bouncing several points. But before 10am the index again headed lower again to put the low of the day on the chart right at the top of the hour. And then yet again the dip buyers arrived to take the tape higher off the lows as this was another frustration for the bears. After a choppy morning the rest of the session gradually traded higher with the high of the day in the last half hour.
The 1262 area is clearly setting up as a zone of support as three of the last five sessions have bottomed and bounced from that area. We have now essentially gone sideways sine the large opening gap on the first session of the year. The opening hour of the year closed at just below 1273 and today's close was a fraction below 1270. So the trend certainly is more sideways than either higher or lower. Yet this market appears to be consolidating sideways. This is constructive and long term bullish.
For the SPX Index there were 235 components advancing and 246 components declining. On the NYSE 3,129 issues were traded with 1,567 advancing issues and 1,471 retreating issues, a ratio of 1.07 to one advancing. There were 133 new highs and 13 new lows. The five day moving average of New Highs is 180 while the five day moving average of New Lows is 9 and the ten day moving average of Net Advancing is 138.
Declining volume was higher at a ratio of 1.21 to one. The closing TRIN was 1.29 and the final tick was 650. The five day average of TRIN is 1.05 and the ten day average of TRIN is 1.. The NYSE Composite Index lost -0.18% today while the SPX lost -0.14%.
For the NYSE, relative to the previous 30 session average, volume was -1.85% below the average. Of the last 15 sessions 5 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 20 sessions ended on a positive tick, 6 of last 10. For the SPX, the day's volume was 85.8% of the average daily volume for the last year. Volume was 121.2% of the last 10 day average and 78.9% of the previous day’s volume.
Breadth was slightly positive today but the volume was in the declining stocks. This remains a very weak rally or a very weak pullback.
Total tick for the day was 138,000 and the average tick for the day was 89. There were 122 ticks greater than 600 and 58 ticks more extreme than -600. There were no ticks greater than 1000 and 1 tick more extreme than -1000.
Intra-day volume tapered off after the early morning selling and the most notable volume spike came around 2:30 on a down move. Checking the Nightly Breadth indicators still has a bearish look. The McClellan Oscillator still looks bearish as does the Summation Index. Once again, the numbers look more like a 1% down day but be only lost a sixth of that.
MORE QE
http://www.reuters.com/article/idUSTRE70A10U20110111?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28News+%2F+US+%2F+Business+News%29
http://www.bloomberg.com/news/2011-01-11/portuguese-bond-buyers-set-to-demand-unsustainable-yields-euro-credit.html
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