Wednesday, June 23, 2010

Light volume - strong price effect

US market, SPX:

Long-term volume signal (1day): Long

Further volume readings from other, non-public sources: selling institutional volume is clearly declining, however signals show a small remaining power need to be eliminated in order to have safe upswing price effect.
Advancing institutional volume shows flattening nature, it needs more addition to pull market up.

Institutional volume momentum is advancing.

Short-term volume signal (15 min): not safe to make buy yet, large buying power is aggregating.

Clear signal of large price effect with small selling volume, very effective correction day, also gives opportunity for bull entry.
Counting with struggling market tomorrow (23rd june) then up (as 1-day term suggests).

Further volume readings from my other, non-public sources:
Second selling-pressure attempt above signal is exhausting, however above critical signal level suggest growing negative price effect beginning on trading day of 23rd, then easing and up signals.

Institutional short-term volume momentum is in negative territory with an exhausting signal.
Volume Declining sentiment is low enough to result oversold market indicators will trigger upswing soon.

Other observations:

Daily SPX RSI does not show overbought status, volume growth shows slowly growing bull build-up.
22th of June had a light bear return with a minor volume, however, selling pressure went through very effectively as bull volume was too low. Institutional traders wait for selling pressure exhaustion.

Instead of the large price effect, force index shows minor negative effect as well.

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