Negative reversal on increasing volume - Market continues in Correction per IBD - two up days in declining volume - Caution
Stocks staged a negative reversal Thursday, closing slightly down after being up most of the day.
The Nasdaq, S&P 500 and NYSE composite each eased 0.1%. The Dow Jones utility average rose 0.3%, suggesting market caution.
The IBD 50 also added 0.3%.
Volume rose on both major exchanges. Advancers had a slight edge on the NYSE and losers a tiny advantage on the Nasdaq.
The day's leaders among industry groups also had a cautious tone. Diversified Operations and Beverages-Non Alcoholic led the upside.
The indexes closed low in the day's range, showing a market that is nervous about recent gains. Volume picked up on the late sell-off.
Two up days in a row raised hopes that the correction might be little more than a head fake, and that's still possible. However, volume declined when indexes were rising, suggesting that the gains might be the real head fake. That too is possible.
The market will ultimately settle the question by either signaling that an uptrend is under way or by taking out support lines.
All three major indexes — the Nasdaq, the S&P 500 and the NYSE composite — are 1% to 2% above their 50-day moving averages. That's a thin cushion for bulls to rely on. The indexes' status remains in doubt.
IB D Man , look at historical volume http://finance.yahoo.com/q/hp?s=SPY+Historical+Prices . What you see is after over 200k down days lows we reversed . Do you see that ? What happens when selling dries up ? Look at the 2011 sept thru dec chart and turn it upside down .
This has been some of the best and easiest daytrading days , get with the program and start making money ! The trading gods are being kind !
this would normally matter but technicals and stats don't matter in this market because it's being propped up good or bad. it's absolutely not trading on current events or news. if it was it would go down as well as up, and not just flat to up.