I thought tonight we would look at a different daily chart. The bgz is a triple short of the sp500, which means that for every 1% the sp500 moves, this moves 3% but in the opposite direction. On this chart we had just about the highest volume since this down move began. In terms of the true range we closed in the bottom half of the range, but in actual trading we closed at the top of a smallish range with high volume. We also failed to close above 55.55 a key level, today. What I wanted to point out in this chart is the relation of thrusts to rallies. From the low at 64.45 the bgz rallied 9.88 points to 74.33. This stock thrusts 8.9 points below 64.45 to 55.55 and then rallies 11.33 points to 66.88. So far we have thrusted only 3.56 points below 55.55 and we must watch the extent of this thrust carefully, because if the thrust diminishes at the same time that the extent of the rally is growing we have evidence of an approaching change of trend. (Less resistance to an upward move than a downward one.) This was the largest rally in the move and the only rally that could not or was not reversed in one day. As bullish as that might sound, the key fact of the last rally might easily might not be the extent of the move but the lack of evident demand, diminished volume on the rise from 55 to 66. This translates as diminished supply in the sp500 market at the same time. On the down ward move volume did not try to disappear, it grew with each succeeding day. Should the down move continue another 6 points by this method the down wave is confirmed.I will not have time to finish going through the charts above, but you may and compare all the ways of comparing selling pressure and buying pressure.
