The
spx closed off the high on the largest volume in three months. The futures actually closed back in the range of the past few days. Either way it is possible shortening of the thrust on high volume and again suggestive of supply entering the market, but the
intra day will tell more.
Please read about the daily charts first. I have drawn in the relevant lines. From 10-11 there is an advance on good volume after which the buying disappears, just like happens so often after a government announcement or important speech. The advance that begins at 11:45 meanders up on light volume until the volume spikes and prices reverse. Prices move back towards the green line. Demand dries up in the attempt to rally from the green line. Supply enters at 2:10,15 and prices slide off easily to 2:30. No lifting power for the next 5 bars and again supply. When the blue line is taken out a lower low is made setting up a potential downtrend. Taking out the red line at 2:20 confirms it. A rally to a lower high followed by a lower low means that we ended the day in a down trend. While we can expect a gap down opening, the
FOMC is meeting next week and I would not expect much until that meeting is over.
The
qqqq and
nasdaq have been the upside leaders. They are now at the point where a reaction might be reasonably expected. After making a low volume small range top at 40.19, the
qqqq fell back on heavier volume. More important, in penetrating last Friday's low, we made a lower low and thus have a potential change in trend. On Friday, like most of last week, the
q's did not make a new high. While not conclusive and easily reversed these observations are suggestive.
The volume for the Dow 30 fell after the good news and a new high with a wide range. This suggests that demand is waning but does not point to selling yet.
The spx closed off the high on the largest volume in three months. The futures actually closed back in the range of the past few days. Either way it is possible shortening of the thrust on high volume and again suggestive of supply entering the market, but the intra day will tell more.
Please read about the daily charts first. I have drawn in the relevant lines. From 10-11 there is an advance on good volume after which the buying disappears, just like happens so often after a government announcement or important speech. The advance that begins at 11:45 meanders up on light volume until the volume spikes and prices reverse. Prices move back towards the green line. Demand dries up in the attempt to rally from the green line. Supply enters at 2:10,15 and prices slide off easily to 2:30. No lifting power for the next 5 bars and again supply. When the blue line is taken out a lower low is made setting up a potential downtrend. Taking out the red line at 2:20 confirms it. A rally to a lower high followed by a lower low means that we ended the day in a down trend. While we can expect a gap down opening, the FOMC is meeting next week and I would not expect much until that meeting is over.
The qqqq and nasdaq have been the upside leaders. They are now at the point where a reaction might be reasonably expected. After making a low volume small range top at 40.19, the qqqq fell back on heavier volume. More important, in penetrating last Friday's low, we made a lower low and thus have a potential change in trend. On Friday, like most of last week, the q's did not make a new high. While not conclusive and easily reversed these observations are suggestive.
The volume for the Dow 30 fell after the good news and a new high with a wide range. This suggests that demand is waning but does not point to selling yet.
