Monday, December 22, 2008

Nasdaq Volume Spyx Suggesting A Short-Term Drop

On the front page of the website I currently show the S&P 500 Volume Spyx chart every night. Subscribers also see the Nasdaq Volume Spyx chart. (More information on Quantifiable Edges Volume Spyx indicators are available here.)

Below is a copy of Friday’s chart. The -18.66 reading is extremely low.


Options expiration may have had something to do with the unusually low reading, but rather than try and justify it away I decided to look at other times where the Nasdaq Volume Spyx came in extremely low. I set the parameters at -5 or below to get a decent sample size:


The results above are quite bearish short-term. Especially interesting is the fact that of the 26 occurrences, every single one of them posted a close below the trigger day close within 3 trading days. If the perfect record is to hold up, the Nasdaq will have to post a close below 1564.32 by Wednesday.

1 comment:

Kevin said...

If the perfect record is to hold up, the Nasdaq will have to post a close below 1564.32 by Wednesday.

Cha-ching!