Wednesday, June 24, 2009

Headed down to 870

3 comments:

JM said...

Obviously the market didn't like the Fed's repeat of what they said last time.

Carl, a question. On the chart you posted today, you noted the 'bullish rejection' of the 884 low and also the need for some caution due to the volume. In looking at the entire chart, the down moves clearly have much higher volume than the rallies, and yesterday fit that pattern. So why the call that this rally would be different? I would think you'd first want to see a rally with volume at least equal to the pullback average.

I don't use volume generally, but I know you find it useful, so I'm trying to learn your thought processes regarding it. Thanks.

Carl Futia said...

As far as I was concerned, the fact of a fast move out of a narrow range was more important than the details of the volume.

Unknown said...

I noticed you analyzed perfectly the prior down move and again believe we headed lower.

It seems like a short is appropriate. I'm just wondering why no position?