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


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.