The numbers here are fairly compelling, especially considering the studies used a long-term trend filter. Bulls may not want to get overly aggressive in the next few days. Risk appears elevated.
Tuesday, April 5, 2011
Low SPY Volume A Concern
SPY volume came in at the lowest level in a long while on Monday. I've shown numerous volume studies in the past suggesting price highs and volume lows are typically followed by a pullback. Below is a study from last night's letter that examines the current setup.
The numbers here are fairly compelling, especially considering the studies used a long-term trend filter. Bulls may not want to get overly aggressive in the next few days. Risk appears elevated.
The numbers here are fairly compelling, especially considering the studies used a long-term trend filter. Bulls may not want to get overly aggressive in the next few days. Risk appears elevated.
More great insight into the volumeless rally! Thanks for what you do. I linked this post on my site. Trevor - www.bookingalpha.com
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