Tonight we can be brief. Please observe the daily SPY and especially how low the volume is. The last 8 days are the lowest volume 8 days in 7 months. Today was the first time that rally volume did not exceed the volume on the immediately preceding reaction. Range was narrow and the day closed slightly off of its highs. While there was not sufficient supply to penetrate the green support line, demand was not up to par either, not being able to generate range or volume. 8 days of low volume at the top of one of the sharpest rallies in history is ominous.Just as note. I have observed many times that when the market is unable to generate demand, the easiest way to sell a lot of stock is to have an upthrust that will bring buyers in with a rush only to relatively soon thereafter yank the rug out from under them. Our pnf count is still for 87 from the hourly.
On the 5 minute we have a variety of counts. 7 at 83.9 giving us 83.7+2.1=85.8 to 83.9 +2.1=86.
Both are slightly higher than the close and go along with the relatively low volume and low end close on the final bar of the 5 minute today. The largest count is across 84.3 with 15 boxes forecasting a move of 4.5 points for 88.2 to 88.8. The middle count and my favorite is 14 across 84.2 for counts of 87.9 to 88.4.
