The stats table appears to suggest a relatively mild, but consistent, downside edge. The bearish influence is primarily exhausted within the first two days, though.
Friday, January 28, 2011
Low SPY Volume At New Highs A Possible Concern
Last week I showed a study that suggested the 1/18/11 move to new highs on strong volume suggested more upside was likely in the next couple of weeks. Despite a quick initial dip, the market has recovered nicely and is again making new highs. But this time the volume is dropping as we go higher – the last 2 days if you use SPY volume as a proxy. We’ve now had two consecutive 50-day closing highs and seen volume decline both days. This pattern was identified by the Quantifinder and I have updated the study below.
The stats table appears to suggest a relatively mild, but consistent, downside edge. The bearish influence is primarily exhausted within the first two days, though.
The stats table appears to suggest a relatively mild, but consistent, downside edge. The bearish influence is primarily exhausted within the first two days, though.
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2 comments:
An AWESOME and timely post!
I love when the probabilities work as they should!
THANKS for all of your posts!
-D
Great post Rob. Love your work
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