6 Sessions of Wild Trading

As I mentioned today, the advance on the indexes (S&P 500, DJI and Nasdaq 100) halted and slightly reversed as indexes came close to their highs seen on October 18, 2010.

A few points to consider:

- it is already sixth trading session in a row as S&P 500 and DJI indexes have wild swings on high volume at the current resistance level;

- today's advance was accompanied by high volume and it could be assumed that negative money flow accumulated yesterday has been compensated by today's positive money flow accumulation;

- volatility is increasing - this would favor bearish trading;

- yesterday's extremely low advance/decline readings on NYSE and S&P 500 are still may affect he trend and push indexes higher;

- QQQQ, SPY and other ETFs advanced slightly after the market closed.

So far technical indicators on 5-min and 15-min charts are slightly bearish. 30-min and hourly chart have mixed signals and I would consider them neutral. I we see a decline tomorrow after the market opens (as suggested by smaller time-frame chart) I would keep an eye on 30-min charts for bearish signals.