S&P 500 forming "W" Bottom ?
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
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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.
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BR: I am not saying this is THE low -- just A low.
Posted by: Mark | Oct 24, 2008 1:34:18 PM
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