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Lee Clayton DDS wrote:
............ but my instinct is that Tuesday and Wednesday's lows
> may have been the best re-test of the October 97 lows that we are
> going to get. Would have been better technically to have really
> tested the October lows, but looks like up from here....at least for a
> while.
>
> So, put away those Bearish thoughts and jump on the wagon.
RT's
What is really interesting is that the price lows have the appearance of
not
being tested. What is really interesting is that volume lows have been
tested
and are now IMVVVHO turning more to the positive.
I am measureing net NYSE volume = advancing volume - declining volume.
The only twist is that the begining of each day the new net volume is
started at where
it ended the day before.
I enclosed a gif. Showing SPX on top and the netcumulative volume on
the bottom.
You can see that the volume low has been tested..Price has effectively
made a divergence
between the price lows made on the 10/30th and yesterday's low. What
now remains to be
seen is if the volume will break through the 10/30 resistance ....I
would suspect that this
resistance line has some strength.. if only because it has two nodes
upon which to draw the
line..
Conclusion... Looking at the past history which is abbreviated on this
half hour basis the answer
could take a couple of weeks to resolve itself if volume starts to dry
up or there is a
real buy and sell battle of rough parity. Or price and volume could go
together and smash right
through old highs. It took roughly 18 days for the volume line to go
from where it was yesterday
to the high..
Don Thompson
Attachment Converted: "c:\eudora\attach\NetVol.gif"
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