Tuesday, April 28, 2009

04.28.09 - Another Gap Filled

The market recovered from yet another sizable gap down. The resiliency was supported by strongly sloped cumulative tick and advance decline lines, and a falling VIX. Note that volume is just a touch ahead of yesterday's -- which is to say -- on the low side. Perhaps institutional desks are holding out for tomorrow's FOMC statement. On the volume side of life again, a curious misalignment for the day is down volume, which continues to outpace up volume in spite of the recovery.

Although momentum "feels" stalled here, for now I am assuming another sideways/ positively biased trade for the second half. However, with volume as low as it is and with contradictory internals, certainly anything goes.

Never Investment Advice

2 comments:

Anonymous said...

WRT the volume anomaly, I have read elsewhere that the huge volume in low priced blue chips (C, BAC, WFC, etc) is distorting the up/down volume numbers. Kinda makes sense today with financials lagging.

Jeff Pietsch CFA said...

Excellent comment, thanks Anon.