Price Time Volume Investing

Today is July 16th 2008 and we had a large volume up day. It remains to be seen if this was a short term reflex reaction on the 52 week anniversary, or if a sustained move up occurs.

Price continues to make new lows on volume. I have noticed a few divergences to go along with the II and AAII surveys as positives.

Volume was up on the SP500 Index (SPX) and Powershares QQQ Trust (QQQQ). Price was up over 1% but below the high of yesterday. Price needs to take out the recent highs quickly or the oversold condition will work itself off and bulls will be in big trouble.

Charts courtesy of Stockcharts.com

The QQQQ rode the 2:1 descending Gann Angle down and bounced at the 1:1 ascending angle using the March to June range square. Price is now at the 50% retrace line and in a strong position to follow the 1:1 ascending angle up.

The NDX and QQQQ are bouncing right where they should. We need follow-through. But a high volume reversal day on all indices is a welcome sight for the bulls.

I don’t know what it is but the market just isn’t acting right . There was the Fed today, and funds going out of business into the end of the month, and Russell re-balancing. My breadth stats were terrible again today. It looks to me like another distribution day.

The QQQQ remains above the 50% price retrace level and volume is falling off in the last few days. This is not super bullish, (not above the 1:1 descending angle), but it is much stronger than the market “feels” based on media commentary.

Yesterday, the Powershares QQQ Trust (QQQQ) tested the recent low and made a high volume run at the 1:1 Gann Angle. The second attempt is usually easier than the first try at breaking a significant angle.

Not much to discuss tonight. Low volume action around the 1×1 Gann Angles of the March to May range. Yesterday was 90 days from the March low and nothing is happening. The SPX range from March has the 50% time line on June 20th with 1348 as the 50% price retrace (50/50 point).

The Powershares QQQ Trust (QQQQ) is almost at the 1:1 descending Gann Angle near $49 which should serve as resistance. If price does break through this angle then it should serve as support.

The volume buying on the SP500 Holders (SPY) and the Powershares QQQ Trust (QQQQ) occurred again today at the open and in the last half hour of the day.

Unless this market is much stronger than I think, the QQQQ looks like it needs to move to the $46-47 area before another leg up. That could happen in one day. And could happen interday and end the day with a new high.

Price and volume are interesting over the past couple days. Yesterday I posted about big volume buying in the Powershares QQQ Trust (QQQQ) and SP500 SPDRs (SPY).

The SP500 Index as viewed by the SPDR (SPY) shows a big volume buying spike at 10AM and even more buying on volume after 3PM. I see the same thing on the Powershares QQQ Trust (QQQQ).

Recap of recent posts.

The Powershares QQQ Trust (QQQQ) is in balance in price and time. Price moved through the 50/50 point and continues up the 1:1 ascending Gann Angle. Volume was better today but not as high as during the decline last week.

The Powershares QQQ Trust (QQQQ) squared out in the short term yesterday and looks strong in the long term. Price continues above the 4:1 Gann Angle of the Mar05-Oct07 range. Price recently bounced off the 1:1 descending angle (as expected) and could move all the way to the 1:1 ascending line without losing it’s bullish attitude.