It is not often you find homophones in the world of finance. A homophone is a word that sounds like another word, but has a different spelling and meaning. When most people hear about Sysco Corp. (SYY) they tend to think about Cisco Systems (CSCO) . This is understandable, but today I really want you to check out the charts and indicators on the food service company.
In this daily bar chart of SYY, below, we can see how prices nose-dived this month to break below the now-declining 50-day simple moving average line as well as the flat 200-day moving average line. Volume was heavy and we can even see a price gap. The On-Balance-Volume (OBV) line turned down, telling us that sellers have become more aggressive with heavier volume being traded on down days. In the lower panel is the 12-day momentum study, which does not show any divergence to the price action.