Friday, April 24, 2009

Midday Briefing for April 24th

Here we see a Market Delta chart of the morning action in the ES futures. Although we had some early weakness, especially among banking/financial stocks, we never hit significant selling levels in NYSE TICK, as noted in the intraday tweet. At the same time, as we broke above the 4/22 high near 859, we picked up volume at the market offer, as seen in the bottom histogram.

If this breakout is valid and we have shifted to an uptrending environment, we should see a continued positive cumulative TICK and continued net volume in ES at offer vs. bid, as well as a rising VWAP (red line), with the index trading above that VWAP level. Note that, as of this writing, XLF has also caught a bid and is trading above its 4/22 highs.