S&P - Broadening Formation

Quote from Eight:

It's up on lack of sellers, if sellers come in it might not be too difficult for them to drive it down...
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Ridiculous.

There is a TON of asset-allocation going on with managers selling Treasuries and buying equities, or have you not noticed that either?
 
Quote from circadian:

Well that's all good and fine, but since the credit crisis first arose in the summer of 2007, these negative volume divergences have resolved themselves in similar fashion. I hope I'm wrong, as I'd like to see this economy back up on it's feet, and I don't think that'll happen if we have another significant market breakdown.

Linear regression study of weekly SPY negative volume divergences:
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Trading based on volume and volume divergences is a total WASTE OF TIME.

Traders get paid in PRICE not VOLUME.

It's almost like someone that is going short because the A/D line is not all that impressive, or there is "light" summer or holiday volume.

That's a big-time "rookie" mistake.
Very dangerous!
 
Quote from Landis82:

Trading based on volume and volume divergences is a total WASTE OF TIME.

That's a big-time "rookie" mistake.
Very dangerous!
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Well, call me a rookie, b/c I hold volume in very high regard, second only to price in my book.

Updated chart of this broadening formation:
 

Attachments

I think Circadian's observation of a broadening formation is correct. I found this site by doing a search of "broadening top" to see whether my own observation of that formation was valid, as I'm fairly new to technicals. I've been thinking that earnings season derailed the H&S, but that a significant correction is still imminent, maybe around 995. BTW Circadian, what charting software are you using? It looks better than mine!
 
I would suggest going back and looking at other historical charts of the SPX when coming off of a huge low, such as 1982. You will see the same kind of broadening ascending triangle formation. No big deal.
 
Quote from Digger:

I think Circadian's observation of a broadening formation is correct. I found this site by doing a search of "broadening top" to see whether my own observation of that formation was valid, as I'm fairly new to technicals. I've been thinking that earnings season derailed the H&S, but that a significant correction is still imminent, maybe around 995. BTW Circadian, what charting software are you using? It looks better than mine!
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Think or Swim
 
Quote from Landis82:

I would suggest going back and looking at other historical charts of the SPX when coming off of a huge low, such as 1982. You will see the same kind of broadening ascending triangle formation. No big deal.
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Landis, like I said, I hope that I'm wrong here. I think that this fragile recovery cannot afford to have any crushing blows delivered to the market's confidence. I appreciate your input, and your views. It takes two to trade.
 
The big picture:

SP-15yr-2.jpg
 
Quote from Landis82:

I would suggest going back and looking at other historical charts of the SPX when coming off of a huge low, such as 1982. You will see the same kind of broadening ascending triangle formation. No big deal.
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Could you point it out? I couldn't find it in 1982.

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&st=1982-01-01&en=1985-01-01&id=p80988904872&a=159169357
 
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