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Over the past twenty five trading days (going back to February 18th, 2013) in the Emini S&P 500, the index has seen either a red volume bar that was increasing from the prior day's total volume (red representing bearish price) or a green volume bar that was decreasing from the prior day's volume (green representing bullish price action) a total of twenty times.
20 out of 25 days of price volume divergence as a market pushes to new highs is usually not a healthy foundation for a bull market. I believe this supply is distribution from "informed money" to the "rampant speculator". And that is not a pretty picture.
As one of the legends in this business Dave Fry has said many times, they don't put the volume on an investors quarter-end statement.
In the meantime there is also a large volatile rising channel to keep an eye on as there are key reference areas to trade from.
(Click on charts to expand)
Here is a look at the NYSE new 52 week highs minus new 52 week lows indicator. What is happening underneath the hood so to speak? In regards to bearish negative divergence, one that is not based on a "sorcery" and formulas, but what is in reality taking place in the stock market, is quite alarming.
I'm looking forward to picking up the quality pieces like the commodities, and producers of the commodities when TSHTF.
Next weekend begins the April issue of the premium subscription based model portfolio services. Email for interest.
ScottPluschau@gmail.com
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