The up to total Volume Indicator has been reliable in the past. As with most indicators the rules of reciprocity apply where the extent of the anomaly (here divergence, see marked in yellow) relate to the extent of the subsequent Market reaction.
In plain english, the longer the Market went up without a proper technical support be it Volume or Breadth the deeper the correction.
So we have to wonder whether it is different this time or not.....?
The question still remains, is this a "real market" anymore? I mean FED and HFT playing this game each and every day, none of the theories/studies working... I know one day this will turn bad, very bad... But again, how many folks remain solvent until such time. :-(
ReplyDeleteLet's hope that sanity returns to this market.
PS: Today was a great day to be a bear at least from study perspective. Because the number of signals that turned bearish on my system, i have never seen that before. So, lets hope these things still work... :-)