There was definitely buyers of stocks today with a big range massive volume up day. The SP500 Index (SPX) and Nasdaq Composite (COMPQ) had the highest volume ever today.
The smallcaps (SML), which are always affected by lack of credit, have not been influenced by the current hits to the financials. Or maybe they have… maybe they should be 30% higher…
A lot of talk about “volatility” focuses on the VIX. A better measure of price volatility is the Average True Range. The COMPQ ATR is near the high from early 2008. The thing to keep in mind that the percentage range is actually higher now because price is much lower.
Chart courtesy of Stockcharts.com
Post Modified: September 21st, 2008 at 8:08 am
Tags: Financials · Nasdaq Charts · Standard and Poor's 500 (S&P500) · Volume2 Comments
2 responses so far ↓
With this big pop we are having over the last day and a half what are your thoughts on the Oct 10ish area being a rally TOP rather than a bottom? In my studies, I don’t see many bear markets ending in a v bottom like this. Perhaps another alternative is a retest of the lows around Oct 10?
Keep up the great work!
Toby - the retest in early October is my guess. I could be wrong…