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).