A day to remember: SPX rebalancing moves Mkt !

11/18 An interesting end day run

Even I did know an eod buying program is going to kick in (that is why I asked everyone to cover shorts in HT post), I am a little surprised on such powerful way they can make it.

AB (Budweiser) is out of SPX due to merger close. The replacement stericycle was half the market cap of AB's 50B, so to maintain market cap for SPX, they need pump billions in SPX, which is the remaining market cap had to be bought by rebalancing, buy up equally other comonents in SPX.

The the rebalancing is done, if this is just an articifical, then we should see the real game continue tomorrow (11/19 Wednesday before OE 11/21)

Here is another one that noticed the breadth:

3 is the number of times since 1950 that the S&P 500 closed up nearly 1% or more, yet breadth on the NYSE was so bad that the Up Issues Ratio was 35% or less. There isn't much about those three instances that is predictive, but it highlights once again just how unusual the times are in which we live. For those curious, the dates were 02/06/53, 10/20/87 and 11/27/07.

Here is what Fast Money thinks:
http://www.cnbc.com/id/27785499

Although the stock market hit new lows and then came back it was really Exxon
[XOM 76.33 2.95 (+4.02%) ]
and Chevron
[CVX 73.40 2.62 (+3.7%) ]
as well as Home Depot
[HD 20.71 0.71 (+3.55%) ]

pushing the Dow around. "This was a 'few stock' rally so don’t buy too much into it," says Pete Najarian. "A lot of investors are talking about BUD coming out of the S&P which was replaced by Stericyle [SRCL 61.13 2.26 (+3.84%) ] That's important because money managers who own S&P’s might have been buying and in turn, creating articifical pressure.