Equities Rise Again, However…
Again, the equity markets are moving higher today due to good earnings, and better than expected housing starts and CPI data. However, the NYSE volume ratio and the NASDAQ volume ratio are not as strong as yesterday, which indicates the buying is not widespread.
The late-morning RSI readings from the CQG Custom QuoteBoard using 15-minute bars for the equity index derivative products are indicating good upward momentum. The RSI for the e-mini S&P 500 (EPM7), the NASDAQ 100 (ENQM7), and the DJ Euro STOXX 50 (DSXM7) are positive. The RSI readings for the Dow (DJI) are indicating strong upward momentum.
The Q.NYSEVolRatio is flashing a reading of 59.4% up-volume, which indicates moderate buying. The Q.NASDAQVolRatio reading is 54.7 % up-volume, which indicates a two-way market.
The MACD and the RSI reading for the CLEK7, Crude Oil for May traded on Globex, are indicating a short-term sideways trend.
The RSI readings for Gold (GCM7) and the MACD action are indicating a sideways trend.
Yields are down in the Treasury market today.
The EUR/USD pair is trading sideway based on the MACD and the RSI readings.
The chart of the S&P 500 and the NYSE volume ratio on a 15-minute basis shows the market continuing to trend higher. However, the volume ratio readings are lagging and that divergence with yesterday’s price/volume action is not a good sign.
The chart of the NASDAQ 100 index and the NASDAQ volume ratio on a 15-minute basis shows this index is making new highs. And, as at the NYSE, the volume ratio is a diverging with yesterday’s volume ratio readings. Buyers are not that strong today.