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Short Term (lasts a few hours to a
few days): As it keeps pushing lower, the market
continues to accumulate more and more buying volume, which should soon serve to
produce a more sustainable short-term bounce than the ones we have been seeing
on an intraday basis (most of which were sold off). 5-day charts show the
surplus of buying volume that has been building up during most sessions since
February 26. 30-day charts of the NASDAQ 100, the S&P 500, and the Dow give
a broader perspective of the strong sell-off the market has been seeing, and to
what extent the major indexes have accumulated buying volume (in green on the
SBV oscillator pane) during this time.
Keep in mind that the market -
because it is now in a mid-term downtrend - will tend to show stronger downside
reactions to even comparatively modest amounts of selling volume. In other
words, for a sustainable recovery, a significant amount of buying volume will be
required.
In summary: The risk remains for moderately lower levels on the
major indexes, but the increasing amounts of buying volume that have built up
should soon prompt a short-term bounce within the new mid-term downtrend (see
Market Stage).
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