Existing Home Sales Report Initially lifts Equities
This morning traders initially turned bullish in reaction to the news that February existing home sales rose a higher than expected 3.9-percent. However, when the S&P 500 edged above yesterday’s high, sellers came in and took some profits.
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), the DJ Euro STOXX 50 (DSXM7), and the Dow (DJI) are indicating moderate upward momentum. The RSI reading for the e-mini NASDAQ 100 (ENQM7) is slightly negative.
The Q.NYSEVolRatio is flashing a reading of 57 % up-volume, which is indicating a a slight amount of buying pressure. The Q.NASDAQVolRatio reading is 60 % up-volume, which is also indicating moderate buying pressure.
The MACD and the RSI reading for the CLEK7, Crude Oil for May traded on Globex, is indicating a short-term up trend.
The RSI for Gold (GCJ7) and the MACD action is indicating a short-term down trend.
Yields are up in the Treasury market today.
The EUR/USD pair is trading lower 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 climbed above yesterday’s high, but sellers came in. The volume ratio is above 50-percent percent up-volume, which indicates traders are buying. However, the ratio is trending down.
The NASDAQ Composite index and the NASDAQ volume ratio readings show the market trading sideways and while the volume ratio is above 50-percent up-volume, it is working its way lower. Traders are shifting towards selling now.
We want to see the volume ratios climbing while above 50-percent up-volume for a bullish sign.