More Selling In Equities
Higher oil prices and comments by Federal Reserve Board Chairman Bernanke, who is testifying before the Joint Economic Committee, have brought out the sellers. The exchange-generated volume ratios indicate sellers are in control.
The late-morning RSI readings from the CQG Custom QuoteBoard using 15-minute bars for the equity index derivative products are indicating weak momentum. The RSI readings for the e-mini S&P 500 (EPM7), the e-mini NASDAQ 100 (ENQM7), the DJ Euro STOXX 50 (DSXM7), and the Dow (DJI) are flashing values between 30 and 45, which are signs of bearish momentum.
The Q.NYSEVolRatio is flashing a reading of just 23 % up-volume, which is indicating a selling pressure. The Q.NASDAQVolRatio reading is 17 % up-volume, which is indicating heavy selling pressure in technology.
The MACD and the RSI reading for the CLEK7, Crude Oil for May traded on Globex, is indicating a short-term sideways trend.
The RSI for Gold (GCJ7) 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 higher 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 trending lower making a series of lower lows and lower highs. The low volume ratio (23 % up-volume) indicates that sellers are in control. The one positive is the NYSE volume ratio is holding above yesterday’s low readings. That indicates the lower prices are not attracting as much selling. But, this cannot be said for the NASDAQ volume ratio. We may be seeing a flow of funds from tech to defensive stocks.
The NASDAQ Composite index and the NASDAQ volume ratio readings show the market taking out yesterday’s low and the volume ratio has made a new low. Selling in technology is a negative sign.
We want to see the volume ratios climbing while above 50-percent up-volume for a bullish sign.