Tuesday, April 05, 2011
Low SPY Volume A Concern
By Rob Hanna
SPY volume came in at the lowest level in a long while on Monday. I've shown numerous volume studies in the past suggesting price highs and volume lows are typically followed by a pullback. Below is a study from last night's letter that examines the current setup.
The numbers here are fairly compelling, especially considering the studies used a long-term trend filter. Bulls may not want to get overly aggressive in the next few days. Risk appears elevated.
SPY volume came in at the lowest level in a long while on Monday. I've shown numerous volume studies in the past suggesting price highs and volume lows are typically followed by a pullback. Below is a study from last night's letter that examines the current setup.
The numbers here are fairly compelling, especially considering the studies used a long-term trend filter. Bulls may not want to get overly aggressive in the next few days. Risk appears elevated.
