Jan
25

SPY Volume Off Sharply on Monday’s Rally

By on Monday, January 25th, 2010 at 3:29 pm

SPY volume currently tracking about 40% lower than this time Friday (see relative volume chart – today’s session is the blue line, yesterday is the thin black line). Historically, an up day for SPY that coincides with a 33%+ drop in volume from the previous session is a short-term negative sign. The last 30 occurrences are listed in the table below…

SPY Closes Up, Volume Off 33%+ From Prior Session
01/19/10… Lower SPY close one session later
12/24/09… No lower SPY close 1-2 sessions later
10/05/09… No lower SPY close 1-2 sessions later
09/28/09… Lower SPY close one session later
07/24/09… Lower SPY close two sessions later
07/17/09… No lower SPY close 1-2 sessions later
07/09/09… Lower SPY close one session later
04/03/09… Lower SPY close one session later
02/11/09… Lower SPY close two sessions later
02/09/09… Lower SPY close one session later
12/24/08… No lower SPY close 1-2 sessions later
11/28/08… Lower SPY close one session later
11/03/08… Lower SPY close two sessions later
10/13/08… Lower SPY close one session later
06/09/08… Lower SPY close one session later
04/28/08… Lower SPY close one session later
04/21/08… Lower SPY close one session later
02/01/08… Lower SPY close one session later
01/24/08… Lower SPY close one session later
12/24/07… Lower SPY close two sessions later
11/23/07… Lower SPY close one session later
10/29/07… Lower SPY close one session later
10/04/07… No lower SPY close 1-2 sessions later
09/04/07… Lower SPY close one session later
08/24/07… Lower SPY close one session later
08/13/07… Lower SPY close one session later
08/02/07… Lower SPY close one session later
07/30/07… Lower SPY close one session later
07/23/07… Lower SPY close one session later
07/19/07… Lower SPY close one session later

Note that in 25 out of the last 30 cases, or 83% of the time, the SPY posted a subsequently lower close within the next two days, significantly better than the 61% at-any-time odds for a lower SPY close 1-2 sessions later in the same period of time.

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