Index Volume

Another great day, another huge volume. As I mentioned yesterday in the "DJI Volume" post, today we had drop at the market open and we had strong recovery. I usually do only one post a week, yet, the last and current weeks are rich on events and volume. Now, by looking at this volume I would expect to see the indexes at least above the September 12 highs and I'm not going to be surprised to see them even above August 11th highs as well.

I do not look far ahead, yet at this moment my technical analysis suggest to expect strong recovery. Such huge selloff we saw last week and last two trading sessions has to be paid off by recovery movement. The history suggest (see historical volume surges statistic in my "S&P 500" post) that panic selling leads the market into oversold stage. High volume in indexes indicates that we have traders who started to satisfy demands of the panic sellers and that means that we will run out of panicers very soon and that means that we will have up-trend.

You now, it is worth to pay for several years of access to the volume of S&P 500, Nasdaq 100 and DJI without trading at all in order to spot just such moment as we have now, as we had in July 2008, in January 2008 and so on...