Having moved through resistance and the down trend line yesterday, today we retreated, testing the resistance line and the trend line. We did so in the spx on one of the lowest volumes all month. The SPY had the lowest volume for more than 1 month. Either the low volume was the absence of supply on a test or it is the absence of demand at the to of a move. The low end close might support the bearish interpretation but there is nothing certain about that. So let's be very specific, the question is whether the support at the old resistance line about 800 will hold and we retest the high of this move and perhaps move yet higher or whether 800 will give way.Looking at the hourly chart, in general, we see the line through the tops is angling toward parallel which can be the sign of a top. Please look at the hourly chart of the SPY and notice how often in the upward trend that the closes in the reactions are mostly contained by the large upward bar which precedes the reaction. This shows little pressure from selling. Today we broke through the low of the 100 million share bar that was the last bar and buying climax yesterday. The only other time we did this on this upward move was after the buying climax on the 18th and 19th a few points ago. The selling pressure is increasing at this level.
Unfortunately, I have to go to bed and cannot finish with an analysis of the 5 min chart.
