Thursday, November 09, 2006

VOLUME ALERT

NYSE traded close to 3 billion shares today on DECLINE, when a move is made on increasing volume it is to be taken seriously. Selling pressure picked up today that is for sure, why it did is for speculation.

I have reasoned that IF the Repub's and their inside cronies goosed the market by buying futures togive the party a lift, now seeing it was for naught, might sustain new buying as the reason to do so is no longer there.

The Q's were held right at their previous 52 wk high leaving a double top in place, it is very interesting how stocks and indexes act at important levels be they previous support now resistance or other way around. Its full meaning is for now unclear, but what is sure, is a pause was necessary.

Will this lead to a meaningful correction? SHOW ME I say, but if high volume continues on declines, be very cautious.

D

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