Keeping it simple... Is there some volume divergence going on? Throughout this consolidation period (grey box) that started about a month ago, volume has steadily dropped with the exception of last Friday. Was last Friday a pre-cursor of what's to come? Will we finally break out of this range to the downside?
Today, SPY is on pace to have its lowest volume day in a month. We all know the general rule of thumb: low volume on big green days means there is little buying interest left. Again, nothing is 100% in the markets. However, today sits right at the top of the consolidation, the top of the consolidation sits right at the 61.8 fib level from all-time highs, volume has been declining since the beginning of the consolidation, and if it closes at this pace it will be the lowest volume day in nearly a month. Now throw in the fact that this whole range was entered from the top and started on the down side - another statistical advantage to the bears that I spoke of in my last chart publish.
There is one thing that I know for 100% certainty... and that is... I am VERY tired of this range bound trading and want a breakout! I'll even play the upside breakout if need be. Just break out already!!
Today, SPY is on pace to have its lowest volume day in a month. We all know the general rule of thumb: low volume on big green days means there is little buying interest left. Again, nothing is 100% in the markets. However, today sits right at the top of the consolidation, the top of the consolidation sits right at the 61.8 fib level from all-time highs, volume has been declining since the beginning of the consolidation, and if it closes at this pace it will be the lowest volume day in nearly a month. Now throw in the fact that this whole range was entered from the top and started on the down side - another statistical advantage to the bears that I spoke of in my last chart publish.
There is one thing that I know for 100% certainty... and that is... I am VERY tired of this range bound trading and want a breakout! I'll even play the upside breakout if need be. Just break out already!!