S&P 500 forming "W" Bottom ?

Friday, October 24, 2008 | 01:30 PM

Ultra S&P 500 ProShares, (S&P500 2-to-1), 6 month chart


chart courtesy of FusionIQ


Watch today's volume --

As seen in the chart above the 3 heaviest volume days (highlighted by green circles)  in the last two weeks on  SSO (Ultra S&P 500 ProShares) an ETF that seeks daily investment returns that correspond to twice (200%) the daily performance of the S&P 500 Index, were on days the index finished up in price. 

This suggests accumulation and could suggest a complex bottoming formation is occurring, particularly when one looks at the recent extremes in sentiment data.

A minor downtrend line (red line) comes into play near $ 31.90. Above this level would suggest that the SSO’s are indeed forming a “W” low here. Only a high volume break below the 52 Week lows would turn the technical picture decidedly negative again.

Friday, October 24, 2008 | 01:30 PM | Permalink | Comments (80) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference S&P 500 forming "W" Bottom ?:


I don't deny that this could be an *interim* low, Barry...but high volume does not correlate to bottoms in crash-scale pullbacks. Just go look at the bottom in 1932 -- volume was nearly non-existent then.


BR: I am not saying this is THE low -- just A low.

Posted by: Mark | Oct 24, 2008 1:34:18 PM

The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™