Price Time Volume Investing

The market rose for 11 days and has followed up with two high volume distribution days. My call, as it has been for the past couple weeks, is that we need a new high after day 11 to consider this more than an oversold bounce.

Last week was basically a lower volume consolidation week. The SP500 Index (SPX) and Nasdaq Composite Index (COMPQ) both finished up but about where they started the week. The Dow Jones Industrial Average (INDU) finished slightly down. The Smallcap 600 Index (SML) had the best week of all stock indices. It has been up four straight weeks on good volume.

Chart courtesy of Stockcharts.com

August 12th is one-half of the time cycle from the May high to the July low. A 50% price retrace is to SPX 1321. If the trend up is strong then price will meet or exceed this price by next Friday.

Recap of Last Week’s Posts

• Gann Zero Angles and the Airlines
• SPX Gann Fan with One Point Per Day
• End of Month Distribution
• SPX Short Term Swing Chart
• SPX 1982-2000 Gann Fan
• Two Stocks in a Strong Position
• Market Extends Rally After A-B-C Correction
• BIDU in Strong Position
• The NDX is Coiled and the RUT has Cup-with-Handle
• Three Day Low Volume Pullback

Post Modified: August 3rd, 2008 at 11:48 pm

Tags:   Market Outlook · Russell 2000 Smallcaps · Standard and Poor's 500 (S&P500) · Swing Charts · VolumeNo Comments