Equities Fail at Yesterday’s Highs
Buyers were unable to get the equity market though yesterday’s high, so sellers came in. Tech is weaker relative to the broad market, which indicates more downside action today to come.
The late-morning RSI readings from the CQG Custom QuoteBoard using 15-minute bars for the equity derivative products are indicating neutral readings for the e-mini S&P 500 (EPH7, the DJ Euro STOXX 50 (DSXH7), and the Dow (DJI). However, the RSI for the e-mini NASDAQ 100 (ENQH7) is indicating downside momentum.
The Q.NYSEVolRatio is flashing a reading of 50 % up-volume, which is indicating a two-way market, while the Q.NASDAQVolRatio reading is 34 % up-volume, which is indicating selling pressure.
The MACD and the RSI reading for the CLEG7, Crude Oil for February traded on Globex, is indicating a short-term up trend.
The RSI for Gold (GCZ6) and the MACD action is indicating a short-term up trend.
Yields are down in the Treasury market today.
The EUR/USD pair is trading in a short-term up 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 markets and volume ratio closed with solid buying yesterday. Today, the readings are neutral. Following yesterday’s 90+ percent up-volume, if the market is strong, the volume ratio should not drop below 30- to 35- percent up volume readings.
More worrisome is the NASDAQ Composite index and the NASDAQ volume ratio readings. Very good buying occurred yesterday. However, today, the volume ratio is running near 35-percent up volume. That indicates pretty heavy selling pressure and is not a good sign.