Hi Jim...
Volume usually precedes price
With due respect, I'd like to place a caveat here. I think during a rally volume should be leading price... especially on 60 minute charts. Thats usually a good sign that instituional... or bigger buyers... are participating.
fwiw I don't think that happened here today...
stockcharts.com[h,a]eaclyymy[d5][pb50!b200!d20,2!a5!g10!f][vc60][iUb14!Uo14!La8,17,9!Lf!Lh5,5!Li5,5!Lg!Lc20]
and if you look at this ytd chart you will see that every volume/price episode of this magnitude has preceded a sharp decline...
stockcharts.com[w,a]daclyymy[dc][pb50!b200!d20,2!f][vc60][iUb14!La8,17,9!Lf!Lh5,5!Li5,5!Lg!Lc20]
I could be wrong but I think tech is due to roll over, if only for a bit. Some cycle work puts today as a turn date to maybe the 23rd or so. Then some more strength in the compx for a run. My guess is this is just another little ramp job to get some folks to chase and generate some income for the institutions making markets in the stock.
small note from options maven Jay S.
--------------
Jay Shartsis
MARKET
5/18/01 10:11 AM ET
Just how overbought this market has become is revealed in the percentage of optionable stocks that are trading above their 10-week moving average. Just before the explosive rally on Wednesday, 74.4% of them were in this condition. At the start of the rally in late March, only 20% were. The highest figure of the past few years is 80%, so we are not very far and keep in mind that the 74.4 was taken before the Wednesday eruption this week.
Message 15820670
all just a guess.
Have a great weekend,
JM |
