Tuesday Recap SPX

The bulls were attempting to return to form this morning in response to solid the PMI reports out of Europe and green numbers from the major foreign markets as the first session of the month bullishness continues. There was no premarket economic news to review in the U.S. but we received reports on Construction Spending and the ISM Manufacturing after the open.

The Tuesday session opened with a significant gap upward and never looked back. Intraday pullbacks were rare and tiny as the bulls romped throughout the morning and early afternoon. The afternoon was consolidation along with what appears to be a double intraday top. The bulls managed a rare feat today as they complete shut down the bears; the bears ended the day with zero ticks greater than 600. This happens about once a year.


For the SPX Index there were 426 components advancing and 57 components declining. On the NYSE 3,146 issues were traded with 2,520 advancing issues and 554 retreating issues, a ratio of 4.55 to one advancing. There were 330 new highs and 8 new lows. The five day moving average of New Highs is 164 while the five day moving average of New Lows is 13 and the ten day moving average of Net Advancing is 186.
 
Advancing volume was higher at a ratio of 7.43 to one. The closing TRIN was 0.61 and the final tick was 970. The five day average of TRIN is 1.06 and the ten day average of TRIN is 1.24. The NYSE Composite Index gained 1.85% today while the SPX gained 1.64%.
 
For the NYSE, relative to the previous 30 session average, volume was 15.2% above the average. Of the last 15 sessions 13 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, 6 of last 10. For the SPX, the day's volume was 113.4% of the average daily volume for the last year. Volume was 99.3% of the last 10 day average and 116.9% of the previous day’s volume.
 
An outrageously positive session, with strong breadth and the broad NYSE Composite Index outperforming the SPX. But it is a bit surprising to see the ten day Net Advancing remain below 200. 
Total tick for the day was 431,000 and the average tick for the day was 278. There were 193 ticks greater than 600 and no ticks more extreme than -600. There were 10 ticks greater than 1000 and no ticks more extreme than -1000.

The last day with the tick this strong was last March 5^th. But in reviewing the data we found it interesting to note that prior to March 5^th the closest to what we saw to today was February 2^nd. You may recall that the February 2^nd session was sandwiched in between two powerful moves lower. It is counterintuitive but true that days such as today are often found on downturns for the market, just as the strongest market rallies are often found during bad economic times.
 
Intraday volume patterns today are difficult to determine because the session was really mostly a continuous ramp higher. Looking at the Nightly Breadth Indicators is interesting because all of the New High/New Low ratios declined and that strikes us as a bit strange on a session such as this.





Sectors stronger than the SPX for Tuesday:
- Basic Materials -- Outperformed the SPX by +119%.
- Energy -- Outperformed the SPX by +3%.
- Financials -- Outperformed the SPX by +42%.
- Technology -- Outperformed the SPX by +3%.
- Health Care -- Outperformed the SPX by +15%.
 
Sectors weaker than the SPX for Tuesday:
- Industrials -- Underperformed the SPX by -28%.
- Consumer Staples -- Underperformed the SPX by -96%.
- Utilities -- Underperformed the SPX by -66%.
- Consumer Discretionary -- Underperformed the SPX by -52%.