Tuesday Recap: A look inside the market

This morning it appeared that the bears were attempting to provide a rebuttal to yesterday's romp on the back of a disappointing GDP report out of the UK and a revenue miss at Johnson & Johnson.

The session began with a three point gap lower. The opening half hour was choppy but the high of the morning was put on the chart at 10am, several points above the open, just into positive territory. But the rest of the morning belonged to the bears as sellers took the index down nine points from the highs just before noon. Bulls then took control of the tape for a five point rally during the noon hour before that faded as sellers arrived and the next couple of hour belonged to the bears. The ping-pong match continued in the final hour as a ten point rally ensued to close at the highs of the session after the low of the day was just before 3pm. No one can afford to be short this market, the fed has pumped in so much funny money that there is real paper inflation. The malls are blistering you cant get a parking spot as people are feeling good about their 401K's, let them eat cake and so on. Party on Garth!


For the SPX Index there were 224 components advancing and 255 components declining. On the NYSE 3,135 issues were traded with 1,629 advancing issues and 1,394 retreating issues, a ratio of 1.17 to one advancing. There were 106 new highs and 19 new lows. The five day moving average of New Highs is 188 while the five day moving average of New Lows is 19 and the ten day moving average of Net Advancing is 151.
 
Declining volume was higher at a ratio of 1.57 to one. The closing TRIN was 1.83 and the final tick was 430. The five day average of TRIN is 1.41 and the ten day average of TRIN is 1.17. The NYSE Composite Index lost -0.2% today while the SPX gained 0.03%.
 
For the NYSE, relative to the previous 30 session average, volume was 9.06% above the average. Of the last 15 sessions 12 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 18 sessions ended on a positive tick, 6 of last 10. For the SPX, the day's volume was 100.8% of the average daily volume for the last year. Volume was 103.2% of the last 10 day average and 119.1% of the previous day’s volume.
 
Breadth was mixed today with the SPX having negative breadth and the NYSE having positive breadth with declining volume significantly higher than advancing volume. The broad NYSE Composite Index also fared worse than the SPX. Overall, the breadth today was not bullish.
 
Total tick for the day was 132,000 and the average tick for the day was 86. There were 123 ticks greater than 600 and 44 ticks more extreme than -600. There were 5 ticks greater than 1000 and no ticks more extreme than -1000. The tick action suggests institutional accumulation.
 
The volume pattern today clearly spiked with each market downward move. That doesn't feel overly bullish. Looking at the Nightly Breadth indicators is also interesting this evening. First, notice that the McClellan Oscillator was negative despite the SPX closing green. Second, the Cumulative Volume Index closed lower on an up day; this is a bearish signal. You know I keep talking technical's but I give up no one cares these days (print and spend), this market is going to keep going up like 1999 and the party will end one day this year and it will be ugly. Stay tuned.









Sectors Performance: 
 
Sectors stronger than the SPX for Tuesday:
- Basic Materials -- Outperformed the SPX by +10%.
- Technology -- Outperformed the SPX by +44%.
- Consumer Staples -- Outperformed the SPX by +35%.
- Consumer Discretionary -- Outperformed the SPX by +3%.
 
Sectors weaker than the SPX for Tuesday:
- Energy -- Underperformed the SPX by -31%.
- Financials -- Underperformed the SPX by -17%.
- Industrials -- Underperformed the SPX by -15%.
- Utilities -- Underperformed the SPX by -17%.
- Health Care -- Underperformed the SPX by -2%.