Ridiculous. There is a TON of asset-allocation going on with managers selling Treasuries and buying equities, or have you not noticed that either?
Trading based on volume and volume divergences is a total WASTE OF TIME. Traders get paid in PRICE not VOLUME. It's almost like someone that is going short because the A/D line is not all that impressive, or there is "light" summer or holiday volume. That's a big-time "rookie" mistake. Very dangerous!
Well, call me a rookie, b/c I hold volume in very high regard, second only to price in my book. Updated chart of this broadening formation:
I think Circadian's observation of a broadening formation is correct. I found this site by doing a search of "broadening top" to see whether my own observation of that formation was valid, as I'm fairly new to technicals. I've been thinking that earnings season derailed the H&S, but that a significant correction is still imminent, maybe around 995. BTW Circadian, what charting software are you using? It looks better than mine!
I would suggest going back and looking at other historical charts of the SPX when coming off of a huge low, such as 1982. You will see the same kind of broadening ascending triangle formation. No big deal.
Landis, like I said, I hope that I'm wrong here. I think that this fragile recovery cannot afford to have any crushing blows delivered to the market's confidence. I appreciate your input, and your views. It takes two to trade.
Could you point it out? I couldn't find it in 1982. http://stockcharts.com/h-sc/ui?s=$SPX&p=D&st=1982-01-01&en=1985-01-01&id=p80988904872&a=159169357