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Strategies & Market Trends : Playing the QQQQ with Terry and friends. -- Ignore unavailable to you. Want to Upgrade?

To: J.K. who wrote (226)	5/19/2005 12:21:21 PM
From: Walkingshadow	Read Replies (2) \| Respond to of 4814

Hi JK, Undoubtedly there is a lot of short covering here. But I continue to see volume spikes at peaks, and the market must react to this sooner or later. This volume can be thought of as "stored energy"... it can accumulate, but eventually must be dissipated. I think that will be soon, in fact I thought it would begin yesterday or today. So far it has not, but this will happen. We have seen this kind of volume accumulate over the last 2 or 3 days now. The more it accumulates, the more downward force it can produce. Partly----but ONLY partly---these volume spikes have been neutralized by volume spikes at the lows, which represent just the opposite. So we now have a surplus of volume that exerts downward pressure. This is a bit like market internals. When they move in a particular direction, price must follow sooner or later. With some (e.g. the TICKs), price follows pretty rapidly. With others (e.g., VIX or put/call extremes), there may be significant delay. Total volume today is not as strong as yesterday. T