[RT] S&P Volume

[Pete Lieber <plieber@xxxxxxxxxxxxxx>]

I was surprised to find that when I updated my S&P volume indicator to see that it is showing a negative bias for tomorrow.  The volume indicator is below Friday's close while the S&P is above (see attached). 

The volume indicator is comprised of industry volume that is weighted to mimic the weight of the S&P component stocks.  In addition the indicator reflects the volume of several thousand stocks not just 500.  For some time now I have been attempting to track the market by tracking and combining the individual component stocks that make up the indexes.  Naturally I first tried the 30 stocks of the DJIA and then the 100 stocks of the OEX. 

I abandoned this approach when it became apparent that the price and volume movements of the large cap stocks that comprise the the major averages are more random than a typical mid-cap stock.  I believe that program trading and index fund buying/selling is responsible for this element of randomness.

__._,_.___

Your email settings: Individual Email|Traditional
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch to Fully Featured
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe

__,_._,___

Attachment: Sp500 102009.gif
Description: GIF image