It's a secret.
No, it's off!
It seems that merger talks between Honeywell (HON) and United Technologies (UTX) are scrapped. Without being a fly on the wall of two boardrooms, I have no idea or inside track on any discussions. But the price action and the volume of these two big names in recent weeks suggests that there was no real commitment (read volume) between the parties.
Sideways -- not the wine movie -- was the direction of prices for HON (see the chart above). While prices went nowhere, the On-Balance-Volume (OBV) line peaked in July, confirming price weakness in August and September. The OBV line went down in November and December before the January price decline. There is just a little "hiccup" in the volume and the OBV line this month as prices spiked to the upside. While prices spiked up, we lacked confirmation from the momentum indicator which did not make a higher high.
The price of UTX has fallen the past 12 months and the OBV line, too, chart above. There is a slight uptick in the OBV recently. It looks like $85 is a good level of support for UTX, until it isn't.
We have two parties, but no commitment ring. No volume. No deal. Prices are likely to resume whatever direction that was in force before whatever discussions did or did not happen. We see more sideways price action for HON and perhaps renewed price weakness for UTX.