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Friday, August 28, 2015 4:05:13 PM
Why Thursday’s Volume Was Disappointing For Bulls
* August 28, 2015
Thursday’s rally was accompanied by the lightest volume in 5 days. The relatively low volume could be worrisome for bulls. The importance of volume can be seen in the studies below. The first one looks at 2%+ SPX gains when volume comes in relatively high.
A week later ¾ of the instances closed higher and the average instance saw the SPX up about 0.9%. Those are some fairly bullish numbers. But Thursday did not post a 5-day high in volume. It posted a 5-day LOW. Below are the results under these conditions.
Numbers here are completely different. Now ¾ of the instances closed DOWN 5 days later – and by a substantial amount. This could be a warning sign that the bounce is not healthy.
http://quantifiableedges.com/why-thursdays-volume-was-disspointing-for-bulls/
- George.
* August 28, 2015
Thursday’s rally was accompanied by the lightest volume in 5 days. The relatively low volume could be worrisome for bulls. The importance of volume can be seen in the studies below. The first one looks at 2%+ SPX gains when volume comes in relatively high.
A week later ¾ of the instances closed higher and the average instance saw the SPX up about 0.9%. Those are some fairly bullish numbers. But Thursday did not post a 5-day high in volume. It posted a 5-day LOW. Below are the results under these conditions.
Numbers here are completely different. Now ¾ of the instances closed DOWN 5 days later – and by a substantial amount. This could be a warning sign that the bounce is not healthy.
http://quantifiableedges.com/why-thursdays-volume-was-disspointing-for-bulls/
- George.
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
gtsourdinis
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