Wednesday, January 23, 2008

Strong Reversal

Follow Me on Facebook Follow Me on Tweeter

Today we saw volatile session with strong opening down on the NASDASQ 100 and then even stronger recovery when the S&P 500 and DJI managed to recover not just from today's session but from the previous two sessions as well.

Today's strong reversal occurred right after the huge volume surge around 13:00 EST. It could be that this was the reversal and from now on we could be in the mid-term up-trend.

The positive point that I saw today is the fact that during today's recovery we saw big volume surges on the intraday charts, however they were ignored and the indexes continued their rally up. As a rule it is one of the characteristics of the up-trend when the market moves up by ignoring the big volume to the price up-move. It tells me that the buying pressure is increasing and supply of sellers is dropping. As I already mentioned before in my “Long-Term” post on January 12, 2008 it could be a first sign that what we see is real reversal.

No comments: