Buyers Initially Bid Up Equities, but Tech is Lagging
The equity markets initially opened higher in reaction to the better than expected job growth reported on Friday. However, the NYSE volume ratio and the NASDAQ volume ratio are showing signs that traders are taking profits into the early strength.
The CQG Custom QuoteBoard using 15-minute bars for the equity index derivative products are downward momentum readings for the e-mini S&P 500 (EPM7) and the e-mini NASDAQ 100 (ENQM7). The DJ Euro STOXX 50 (DSXM7) futures market is closed today. The RSI readings for the Dow (DJI) are slightly bullish.
The Q.NYSEVolRatio is flashing a reading of 58% up-volume, which indicates a two-way market. The Q.NASDAQVolRatio reading is 57.6 % up-volume, which also indicates a two-way market.
The MACD and the RSI reading for the CLEK7, Crude Oil for May traded on Globex, is indicating a short-term downtrend.
The RSI for Gold (GCJ7) and the MACD action is indicating a short-term uptrend.
Yields are up in the Treasury market today.
The EUR/USD pair is trading sideway 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 higher for the past three days. The volume ratio readings are rolling over, which is a sign that traders are taking profits at this point.
The chart of the NASDAQ 100 index and the NASDAQ volume ratio readings show the market opened higher, but then trended down. The volume ratio dropped off as traders initially did some selling into the strength.
We want to see the volume ratios climbing while above 50-percent up-volume for a bullish sign.