Both the NYSE and Nasdaq volume traded at extremely low volumes today. The lowest in over 2 years excluding holiday low volume trade. Actually the NYSE had 1 lower volume day a couple weeks on Feb 24th. Low volume like that is not supportive of a market rally from everything I've studied.
I think it is safe to say that a successful breakout of the May 2011 high should see at least decent trading activity indicating that institutions are interested in buying the breakout. Also, I think that looking at past highs like that, there will typically be a larger definitive candlestick to the upside by this time after exceeding that old high if the breakout was solid. So, obviously anything can happen, but think about what this means.
Also, the 50 day average volume is hovering basically at multi year lows. Troughs in the volume are associated with rally tops. And a multi year low in volume in the context of a double top potential chart pattern could portend a sharp decline.
I again suggest that traders steer clear of the long side. The price has not broken decisively, but it seems to be just a matter of days.
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