Buyers are Tip Toeing Back into Equities
The S&P 500 is climbing today despite a higher than expected reading for the producer price index. Treasuries are off on the heightened concerns regarding inflation. The exchange generated volume ratios look positive at the start. However, technology is lagging.
The late-morning RSI readings from the CQG Custom QuoteBoard using 15-minute bars for the equity derivative products are mixed. The RSI readings for the e-mini S&P 500 (EPM7) and the Dow (DJI) are positive. The RSI readings for the e-mini NASDAQ 100 (ENQM7) and the DJ Euro STOXX 50 (DSXH7) are indicating flat momentum.
The Q.NYSEVolRatio is flashing a reading of 76.57 % up-volume, which is indicating solid buying, and the Q.NASDAQVolRatio reading is 75.98 % up-volume, which is also a positive sign.
The MACD and the RSI reading for the CLEJ7, Crude Oil for April traded on Globex, is indicating a short-term down trend.
The RSI for Gold (GCJ7) and the MACD action is indicating a short-term up trend.
Yields are up slightly in the Treasury market today.
The EUR/USD pair is trading in a short-term sideways trend based on the MACD and the RSI reading.
The chart of the S&P 500 and the NYSE volume ratio on a 15-minute basis shows the market rising and the volume ratio readings are the highest they have been for three days, a good sign. We can also see the divergence yesterday when the S&P 500 made new lows and the volume ratio did not. The lower prices did not attract sellers.
The NASDAQ Composite index and the NASDAQ volume ratio readings show the market trading near the highs of the last two days and struggling, while the current volume ratio reading is running at 74% up-volume. That’s a near-term positive sign. We want to see the volume ratios stay well above the 50% up-volume readings.