August 27, 2009
We shall see who was buying in due course, now won’t we? The bottom line from a volume view is sellers were dominant most of the day despite the “stick save” as the day progressed. Lately, bears just can’t seem to generate headlines by day’s end. But, if you look at the 5 minute SPY chart below, you’ll see very heavy selling in the first hour of trading. Although markets closed higher, it took most of the day to undo the damage—but it was undone.
It’s interesting that “better than expected” news is sold while “worse than expected” news is spun as positive. This is the “bullish bias” at work.
Volume wasn’t great and this is the negative you can draw from most recent up days—lower volume than on down days. Breadth overall was positive but barely so masking earlier damage.
click to enlarge
The McClellan Summation Index is still at ultra-high levels indicating much overbought conditions. Some sideways action would be beneficial in the short term and that’s what we’re getting.
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