Tuesday, February 05, 2008

Volume up, price down. . .way down

Yesterday I suggested that the Qs would test the 43.55 support . . .little did I imagine that it would happen so soon. The Qs opened about S3 and finished about S6 on double yesterday's volume and the volume was going parabolic down for the last 30 minutes. . .not a good sign. A selldown to the S6 or S7 pivot is a rare occurence, even in these bear market times, so while there may be a reaction bounce into tomorrow's open, I would be inclined to view that as a selling opportunity and I reiterate yesterday's position that the likelihood of testing the 42 lows is now very real as supported by the RSI, CCI, MACD and every other technical indicator on the daily chart. Also see Saturday's 3 LRs studies. Today was not a volume selling capitulation day. . .it was just a pitiful down day.
When I was in my early twenties (some 40 years ago) I played in a bluegrass band called the Susquehanna River Boys (our fame was small, our fans were few) and before performances we would categorize the songs we were going to play into 3 types: mournful, dismal and just plain pitiful depending on the makeup of the audience (our musical bias was to the darker side of life). Today's market action, my friends, was just plain pitiful.

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