Volume Collapses As End Of Week Nears
0
May 26, 2016

Only 45M shares in SPY (S&P 500 ETF) traded Thursday which is about as low an effort as one might observe on the eve of a Holiday trading. In fact, trading throughout this week short-squeeze rally week has been light. While the tape has told a bullish story, it’s not uncommon to see stock volume light on rally weeks and higher on sell-offs. That’s been doubly the case this week.

It doesn’t make much sense to post our daily view Thursday, I’ll do so now but keep comments quite short now.

There was some economic data Thursday including Durable Goods Orders was positive on the gross report (3.4%) but negative on Core Capital Goods at (-0.8%); Pending Home Sales were very strong at 5.1% but seasonal factors in play; and, Kansas City Fed Manufacturing Index fell once again to -5 leaving this area still in the red once again.

Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day (green) may mean leveraged inverse or leveraged short (red).

5-26-2016 2-58-28 PM

Volume was dreadfully weak and breadth per the WSJ was mixed.

 5-26-2016 2-59-36 PM

 

Charts of the Day
  • SPY 5 MINUTE

    SPY 5 MINUTE

  • SPX DAILY

    SPX DAILY

  • SPX WEEKLY

    SPX WEEKLY

  • INDU DAILY

    INDU DAILY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • NYMO DAILY

    NYMO DAILY

    The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

  • NYSI DAILY

    NYSI DAILY

    The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.

  • VIX WEEKLY

    VIX WEEKLY

    The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation has changed due to a variety of new factors including HFTs, new VIX linked ETPs and a multitude of new products to leverage trading and change or obscure prior VIX relevance. 

On such a weak volume week, there’s not much to say.

Have a good Holiday weekend.

Let’s see what happens. 

...

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Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.

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