Theres a saying in may...have you heard of it? the saying is in may its time to go away, i got reminded of that when i was watching cbc news buiness, when he ask the market guy do you think that is what is going to happen, do you think that it will happen this time. no body knows for sure but i do think that next week we will know. on monday is the offical announcement of the stress tests, so the question becomes will it go higher. i looked that the markets the dow, s&p 500, nasdaq, tsx for clues and guess what in the last week there have been stock with heavy buying volume, but looking at he markets (i am going to post just the nasdaq, becasue they all have the same kind of pattern - which just also happens to be a bearish pattern) i don't know but to me looks like it has been trading sideways for about 13 days (look at the price candles between 1600 - 1700 points. right now i think a resistance is forming at 1700 for the nasdaq anyway. so i just thought that i would post this because to me this is screaming that it is going to start falling soon, the main reason is some rules from the book getting started in candlestick charting page 105
price is rising volume is rising - strong uptrend
prise is rising volume is declining - weak uptrend
price is declining volume is rising - strong downtrend
prise is declining volume is declining - weak uptrend
volume has been declining and with a flat market, professionals in general (i know there are stock that are posting big buying days) don't seem to want to push the market higher, my thesis is if they really wanted to then why has the general market been trending sideways for 13 trading days(Thursday is 3 weeks - 5 days in a trading week)
Hope This Helps And Don't Forget To Have A Fantastic Day.
