S&P 500 looking very toppy

[tradersaavy]

dbphoenix


there is a great article in the current Stock and Commodities magazine which goes over new highs/lows and up/down volume divergence compared to price action which may be similair to what you are looking at .

I searching right now to find charting that will diplay what this article is covering.

 

[dbphoenix]

Quote from tradersaavy:

dbphoenix


there is a great article in the current Stock and Commodities magazine which goes over new highs/lows and up/down volume divergence compared to price action which may be similair to what you are looking at .

I searching right now to find charting that will diplay what this article is covering.

I don't follow new highs/lows so much any more because the averages have become filled up with so much that aren't stocks. Therefore, the figures are thrown off, sometimes dramatically (see the new highs for last month).

I haven't seen the TASC article, but as for charts of volume of advancers and decliners and the difference between the two, see StockCharts.com. Do a symbol search using "$N" and you'll get a list of all the "data" charts. Once you have them, plot a 10d SMA and you'll be able to compare the action to the price chart of whatever average you're looking at.

 

[Romeo]

Quote from dbphoenix:



What I'm looking at right how is the volume of advancers. It's far less than it was a month ago. This doesn't suggest an imminent collapse, but if demand is strong enough only to keep price at or near this level, it will not withstand any appreciable amount of supply.

How about a 10% correction? Is the demand strong enough for that?

 

[Kap]

doubt it yet , I smelll buyers all over the place lower down

 

[dbphoenix]

Quote from Romeo:

How about a 10% correction? Is the demand strong enough for that?

Demand drives price up. Insufficient demand allows price to fall. Any correction could be from 1% to 100%. That's what support/resistance, trends, and price/volume relationships are all about.

 

[Romeo]

Quote from dbphoenix:



Demand drives price up. Insufficient demand allows price to fall. Any correction could be from 1% to 100%. That's what support/resistance, trends, and price/volume relationships are all about.

I believe the question was: "do you believe the demand could dry up enough for a 10% correction in the stock market?

I don't know what you're talking about.

 

[Mvic]

Good call, best day I have ever had.

 

[dbphoenix]

Quote from Romeo:



I believe the question was: "do you believe the demand could dry up enough for a 10% correction in the stock market?

I don't know what you're talking about.

Actually, the question was How about a 10% correction? Is the demand strong enough for that? Perhaps you meant "is demand weak enough for that?"

In any case, I have no idea, and what I believe or feel or think isn't going to have any effect on price. Sure, demand could dry up enough for a 10% correction. It could dry up enough for a 50% correction. Or it could generate a substantial rally.

If you don't understand what accumulation and distribution look like yet, look for a day with high volume and little or no price progress. Since volume is a function of number of shares traded, this indicates a great many shares being made available for trade, but insufficient demand to drive price higher. That may last for only a day or so, but it's generally a warning sign.

 

[Romeo]

Quote from Mvic:

Good call, best day I have ever had.

Excellent day for me too.

This thread will catch its popularity. Just look at the poll results. So far its only really attracted the bearish camp to it.

 

[theShadow]

this morning.