If we don't see volume develop as we go lower, we're going to see a snapback to try and test that high. As you can see the first bounce from the intraday high to the succeeding low this morning was contained within the price envelope of the reference candle (10/10 - 936.36)
If 921 is consolidated on this light volume we could see a strong bounce, otherwise we'll need to see some strong volume on the test to continue lower...
OK, sign of strength now on SPX 3 min Candle Trend GREEN... Volume still light, 936.36 top of price envelope. We may see a "jump the creek" there now as we consolidate underneath and then try to gap over it...
ReplyDeleteOK, so we had 6 successive green candles followed up by 5 reds, pretty much cancelling the previous sign of strength... we're back to neutral on candle trend t present, we may be trying to break the envelope here once more.
ReplyDeleteAnd now we have a couple of signs of weakness. Firstly we're still failing to break the 10/10 price envelope, and rather than gapping over the 936.36 resistance on strength it's been a nip and tuck. Secondly we had another 6 RED candle in succession SELL on the 3 min Candle Trend. Now this is all on light volume, so we have to interpret this as continued consolidation. I hope if nothing else this convinces some of you of just how important volume is in determining support and resistance. scroll down the page and take another look at the daily spx with the price envelope off the last day of volume 10/10, and then look at how it acts here at resistance.
ReplyDeleteThe boyz are doing a good job of mixing their signals today... now we have another 3 min candle trend turn back up... and a jump over the top of the envelope again... At this point the price pressure is persistent to this level. We're either going to break out of this now, or break down here a la price rejection...
ReplyDeleteOK, so this really starts to look like an upthrust now as the boyz get desperate and start gapping up price on questionable volume on the 3 min... we'll see shortly.
ReplyDelete3:11, one more check in here back at 936, the bulls need to break this high in the next 5 min...
ReplyDeleteOtherwise we may have seen the highs... for today.