In a non supply/demand ratio instrument like a company bank account... When things are going well and everyone is feeling good the money is flowing in and things are rising. In a ratio instrument when everyone is feeling good it's maxed out. Look at a bank run... When there is complete fear the bank run progresses at a continually steady rate until it finishes. When there is complete fear in the stock market the market is bottomed. See how peoples emotions screw them up in the stock market? Whenever they feel optimistic it's a top, whenever they feel scared it's a bottom... It's a little more complicated than that but you should understand what I'm getting at. What I am trying to explain is that these people on these forums... Most of them are "sucked in" by the market. They basically become "one" with the herd. The ones of us that make money don't really think much of market moves. All you should be thinking is "the herd is feeling good today", "the herd is spooked." The reality of the market is that there is spikes of fear, and bounces where everyone is second guessing, then spikes of fear again. You can never be quite sure how big the next upward move or downward move is going to be until you see how people start reacting to the price move emotionally. In a market where even a yearly pivot can cause a multi week rally. People need to stop logicalizing price movement. Price is just a representation of everyone collective emotions.
Actually, nope... The first half of a day there can be huge volume buying at say 1300 to 1310... Then the market drifts downward to 1300 later in the day in very low volume. Overall massive amounts of money was traded at rising/higher price levels, but the market ends 10 points lower, how do you explain that? Just a hypothetical scenario, but seen it happen before. Heck, back in 2010 I remember an entire day that was like 1/4th the volume of the previous up days, but ended up dropping like 30 points on super low volume... There wasn't much money flowing out, but nobody really felt like buying that Friday. If you follow the market closely you know exactly which day I'm talking about.