Thursday, August 5, 2010

Low Volume / High Price A Bearish Combination

While the SPX was closing at a new short-term high yesterday the NYSE volume was coming in at the lowest level in over two weeks according to my data. Over the last several years this has not been a good combination - even when the market is in an uptrend. This is demonstrated in the study below.

This would suggest the market may be susceptible to a pullback over the next few days.

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