The volume was up today on a down price day which is a negative. How much of a negative remains to be seen as price moved up will after 3PM on big volume. The QQQQ had the most hourly volume in two days and nice move up in price in the last hour today. Realistically, with two big gaps up on the Nasdaq in a week, it isn’t unexpected to fill at least one of those gaps.
The SPX will probably not move up until Friday when the square of the range ends. I changed the day count from 15 to 14 after further review. Where price ends on Friday will tell us a lot about where it will go next week. A close at the 1385 level is a bullish work off of the 14 day thrust up from the March bottom. A close below this level would be proportionally less bullish as price declines.
The SPX range from the October to the March bottom bounced off the 2:1 ascending Gann Angle. The 2:1 descending Gann Line will most likely provide resistance if we do move up.
The SPX long term chart shows price above the 2:1 red descending Gann Angle with no other red lines until around 1450. It doesn’t look good for a move here, but if buying comes in I would not be surprised to see this angle hit. The bottom line is that even with weak volume up and a distribution day today, price is looking pretty good with respect to time.
Charts courtesy of Stockcharts.com
Post Modified: July 3rd, 2008 at 12:21 am
Tags: Distribution Day · Gann Angle Fan · Nasdaq Charts · Price Retrace · QQQQ · Standard and Poor's 500 (S&P500) · Volume2 Comments
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