It is unfortunate that on my return to blogging after a short hiatus, I feel I should say almost nothing about the daily or intraday charts. The reason is that the volumes do not make sense and the price action on the intraday although complicated to explain and I will not do so, also does not conform to typical behavior. The intraday shows almost panic buying where there is no reason to panic. The Spy volume was the highest in two weeks and around the highest is 6 weeks. The Futures volume was the second highest in a month. The spx and indu volumes were at the lower end of their ranges.(see above) These relative numbers are so discrepant that the price and volume action cannot be consistently interpreted. That being said I will hazard a guess that the etf and futures volumes are too much and a price reversal is pending.Looking at the pnf, where volume is not involved, in the spx we have backed up to support/ resistance as the theory says we should and more importantly, as I frequently said we would, we have added cause.
Although I rarely discuss the news, if you care to understand why such blatant manipulation might be going on, and my raw number sense says that these volume discrepancies are so extreme that statistically they should occur once a millennium or so by chance, please read Alan Greenspan's article in today's Financial Times where he explains why higher equities are so important to the financial recovery. Somehow I remember him saying almost the same thing in 2002 and 2003 about higher real estate prices.
