Friday the 16th of December we have a down bar in the S&P 500, with very high volume and I outlined in last weeks post that this could be buying in the background if the next trading day bar was an up bar. The Monday bar was a down bar which showed continued selling.
Monday’s bar we saw a VSA principle, No Supply, with volume being below average and with Tuesday being an up bar which confirms this principle. Wednesday we witnessed a major more to the upside with positive news annoucements with Nike having a positive earnings annooucement boosted market participants’ sentiment that a recession may not be imminent.
Thursday and Friday we witnessed testing of the market. With Thursday having a wide range bar, closing in the top third of the range. Most importantly, Friday we have a test bar and what is most notable with Fridays action is the lower volume. This volume was one of the lowest volume in 3 weeks. Was this volume due to traders knocking off for the Christmas holidays? We’ll wait and see. Next weeks trading we will see thinly trading markets so we’ll have a better guage after the new years celebrations.
S&P 500 Weekly – is there going to be a trunaround?
The weekly chart shows us the continued pressure to the downside and this bar seems to be testing the market with the bar closing on the top third of the trading range. Where this bar closed was just below the close of the previous weeks bar with below average volume.
We may see between Christmas and new years markets rally, with the testing on the daily chart and a test like bar on the weekly. Buy don’t forget, volume will not be there due to the holidays.
I hope you guys had a wonderful Christmas and a great new years.