Your chart should be featured in a text book named, Why Volume Is A Useless Indicator. Lotsa shorts came out of that higher volume selloff a couple of weeks back. Now they're stuck and there's not a lot for sale. BTW: Volume has been just as anemic in NQ and that market has still not even traded above January!
The Dow looks to be the canadate for the republican party. Good strategy choosing the Dow its real easy to manipulate a couple of billion dollars and you can lead it around like show steer.
Well you actually hit on my macro view of what's happening. The Dow is window dressing. For the next few weeks we'll continue to hear, "Dow on Six Year Highs!!" maybe even "Dow makes ALL TIME High!!". Meanwhile many leaders of the three year plus rally continue rolling over to the downside. Much like 2000. The recent divergence between the DJI and NDX is not a bull item for the broader market.
pabst do u believe volume is a useless indicator? i only trade intraday and i can understand volume, but see it as useless for me.......i can see what the prce is doing and how fast i don't need anything to tel l me that but myself......tha tis my system has already given entry signal that is same as exit signal so why d o i care what happens betweent those 2 events........i don't trail stops either........signal to signal.......might get out and re enter on some but end to end for me.......
Except for the very high volume day, marking a spike low type thing, I've haven't seen much in traditional volume analysis that works. In fact I think some of the old saws are fades. This rally in the YM is case in point. How many times in stocks do we see stair step multi week rallies accompanied by low volume and ultra low volatility? ALL THE TIME. No expanding volume as the experts would claim but rather, often declining volume. Why? Because the sellers who would normally check advances are already short. Perhaps they add on the way up. But when tactical shorts are unable to dislodge longs, the covering of those shorts can be gruesome. Trading is funny. You get paid depending on your size not the markets volume. The clearing house doesn't rebate your loss because it was a light volume ramp. That's why in futures all volume analysis would include open interest. Or a glance at the COT report released each week. Modest volume accompanied by a rising open interest can be significant.
Reminds me of an old joke I'm sure some have already heard. Broker calls up a client and says "I got bad news and good news" The client says "so what's the news?" The broker says "the bad news is your account has been blown out." "The good news it was on low volume."
i appreciate all of the above.....i have been in the minority for years.....i don't watch volume.....only a distraction for me.....now for the heresy, i don't watch support and resistance either..........