Just the Facts: Light Volume and Negative Breadth but New Highs Blow Away New Lows on NYSE
1min read NYSE saw a trading volume of 830 million shares compared to an average of 973 million, while Nasdaq's volume came in at 5,059 million shares against its average of 5,650 million.
Market Breadth and Advancers vs. Decliners
Market breadth data reflected a lack of clear directional bias. On the NYSE, declining stocks outnumbered advancing ones, with decliners leading 1,553 to 1,235. The volume of declining stocks was also higher, with 506 million shares traded versus 304 million shares of advancing stocks.
Meanwhile, on the Nasdaq, the trend was similar as decliners led advancers by a count of 2,398 to 1,862, although advancing volume slightly outweighed declining volume (2,984 million versus 2,050 million).
Interestingly, new 52-week highs outpaced new 52-week lows on the NYSE (214 versus 72), indicating some underlying pockets of strength despite the overall cautious sentiment.
On the Nasdaq, however, new lows exceeded new highs (137 versus 126), highlighting greater weakness and volatility among technology and growth-oriented stocks.
Areas of Relative Strength:
The U.S. natural gas sector, as represented by the United States Natural Gas Fund (UNG), led the gains with a strong 5.39% increase. Thailand (THD) also performed well, up 4.31%, reflecting potential interest in emerging markets.
Precious metals such as silver (SLV) and platinum (PPLT) gained 2.1% and 1.93%, respectively, as investors sought refuge in safe-haven assets. Junior gold miners (GDXJ) and wind energy (FAN) also saw buying interest, up 1.7% and 1.26%, respectively, signaling investor interest in both defensive and green energy plays.
Other outperformers included Belgium (EWK), Spain (EWP), and South Africa (EZA), suggesting a global diversification strategy among investors.
Areas of Relative Weakness:
Conversely, certain sectors exhibited pronounced weakness. Short-term futures (VXX), which track market volatility, fell 4.46%, reflecting reduced demand for protective hedging.
Uranium (URA) and uranium & nuclear energy (NLR) segments were also under pressure, declining 1.95% and 1.38%, respectively, likely due to profit-taking after previous gains. Pharmaceuticals (PPH) and the transportation average (IYT) shed 1.69% and 1.62%, respectively, suggesting skepticism toward healthcare and cyclical sectors.
Other underperformers included healthcare (XLV), Poland (EPOL), U.S. gasoline (UGA), industrials (XLI), and U.S. financials (IYF).