Monday, June 7, 2010

99% Down Volume Days

The NYSE Up Volume % came in under 1% on Friday. In other words, over 99% of the volume was in declining securities. Breadth this extreme is remarkable. According to my database there have only been 4 other days since 1970 where the NYSE Up Volume % came in at under 1%. I’ve listed them below along with their next-day returns.

Traders may also want to a look at these dates on a chart. You’ll note that they all either marked an intermediate-term low, or were very close to one.

1 comment:

Bill Luby said...

So...looking at the CBI and 99% down days, as well as other oversold indicators that are at historical extremes, how do you interpreted the failure to bounce? Is this a negative divergence that is bearish...or would you consider this an opportunity to build larger and/or more leveraged speculative long positions to take advantage of a bull move that is likely just around the corner?

I appreciate any input you might have.

Cheers and thanks for your excellent body of work,