Someone said it was back and here to stay so get use to it, who said that? I belive them and was counting on some wild swings.
it is frustrating being long this market though... 8 days of up at 1 pt/day is wiped out by 5 minutes of real selling. thats how the market feels.
vix goin' to 9 again? maybe 8?? nah, we going down from here...hopefully. we are consolidating/distributing for now.
The reason why a single 5 minutes of selling can wipe out 5 days of gains without elevated volume is because the sellling is of very high density and therefor has a greater impact on the stock price in accordance to the energy formula . High selling density is denoted as a numeric value usually between .75 and a maximum of 1. Distribution, on the other hand, is denoted by 0 because there is no change in price (and hence no slope and creation of positive energy and or resistance to selling).
i'm not sure i buy that. buyer exhaustion can occur on high volumes as well. look at aapl pre-earnings for 07.