Bullish Price Action Facing off Against Weak Volume
By
Rennie on Monday, April 5th, 2010 at 3:28 pm
Bullish price action facing off against weak volume. S&P futures opened above the previous day’s high for the second day in a row Monday, triggering a buy signal for Tuesday’s session (see this March 17th column for a recent track record). Volume is light, with SPY and ES volume running 30-40% below Thursday’s levels. That could mean we’ll see a fresh two-month low for SPY volume, usually a negative indication for the following session when it coincides with SPY hitting a five-day high (see this post from last October for details). However, when in doubt I lean in favor of price action over volume.
Bullish Price Action Facing off Against Weak Volume
By Rennie on Monday, April 5th, 2010 at 3:28 pmBullish price action facing off against weak volume. S&P futures opened above the previous day’s high for the second day in a row Monday, triggering a buy signal for Tuesday’s session (see this March 17th column for a recent track record). Volume is light, with SPY and ES volume running 30-40% below Thursday’s levels. That could mean we’ll see a fresh two-month low for SPY volume, usually a negative indication for the following session when it coincides with SPY hitting a five-day high (see this post from last October for details). However, when in doubt I lean in favor of price action over volume.