For a change please begin with the daily SPY. The volume today was the lowest this year including holiday related days. The range narrowed and the close was low end. The volume on the rally yesterday was low as well showing a lack of significant demand and is the opposite so to speak of April 20. Diminishing volume on the rally, narrowing range, a low end close, and an inability to reach the old high at 93.22 marks today as a secondary test from Mr. Wyckoff's point of view. We should note that volume at 206 million is 40% of the volume near the lows March 6 and 30% of the volume at the end of November. This represents an enormous drop in demand and makes the third day in a row where the absence of demand is notable. The market requires a heavy volume wide price range break to confirm the accuracy of our deductions.Briefly the daily Dow has similarly narrow range but the volume today was the same as yesterday. Supply overcame the minimal demand as the average kissed the blue trend line goodbye.
Turning to the 5 minute bar chart, the low volume yesterday and today is striking. Yesterday the 10:45 bar was the only one to exceed 5 million shares except around the opening and close. The market moved up in a stair step pattern. Most steps had a spring which triggered buying by hopeful bulls, but the demand never amounts to much. Nevertheless the market closed on its highs. Today the market advanced strongly with increasing volume and high end closes to 91.89. On the futures market, the volume at red 1 is much higher. Perhaps again there are problems shorting the SPY. At 91.89 begins a 10 point trading range that last until the final upthrust at 91.97. PLEASE ON YOUR OWN FIND THE PATTERN AFTER THE UPTHRUST THAT WE HAVE DISCUSSED QUITE A FEW TIMES AROUND SPRINGS.
