Big Volume

Big Volume –> “Big Money” -> Big Changes

Even the indexes dropped less then yesterday (-1.15% today versus -2.82% yesterday on the NASDAQ 100) and today's decline was on huge volume surges. In fact, today's volume output exceeded the average volume generated over the past nine sessions by 51% on the NASDAQ 100, by 22% on the S&P 500, and by 49% on the DJI. Today's NASDAQ 100 volume is one of the highest daily volumes in the NASDAQ 100 history. The only volume higher then today's, was S&P 500 which was noted on August 16, 2007. Same as for NASDAQ 100,today's DJI volume beats the records.

More then 4B shares were traded today in the S&P 500 sector, more then 1.5B in the NASDAQ 100 sector and more then 1B on the DJI. The S&P 500 volume was today higher then the average daily volume on the NYSE over the last year.

Today NASDAQ 100 and the DJI indexes came close to the August 16, 2007 low (resistance line). The S&P 500 index dropped below the August 16, 2007 low and almost hit the march 14, 2007 low (another resistance line). No doubt that today the market hit patience and stop-losses long-term traders. the question is WHO BOUGHT FROM THEM SUCH BIG NUMBER OF SHARES. I will not believe that such huge volume was generated by retail traders and intraday speculators… Some “big money” was involved in today’s trading.

It’s difficult to say that this was the moment and now we are at the door of the long-term up-trend again. To make a statement about long-term I would like to see the mid-term first and I believe we are at the door of the new mid term up-trend.