Broad market volume patterns, combined with poor performance by leading individual stocks, always play a crucial role in identifying significant market tops and bottoms.
As technical momentum traders, we never place much weight purely in seasonal market trends because we focus on the performance of leading stocks and
broad market volume patterns instead.
Not exact matches
Big Money Movers As signs of life from Bitcoin begin to make waves in the
broader cryptocurrency
market, the amount of high -
volume, off - exchange trades is starting to pick up.
Perhaps even more important than the
volume patterns in the
broad market is the performance of leadership stocks.
Despite weakening performance in leading stocks and recent
broad market distribution (higher
volume selling) that sparked the new «sell» signal, it's important to note that both the S&P 500 and Dow Jones Industrial Average are still trading firmly above key, intermediate - term support of their 50 - day moving averages.
For the second day in a row, the
broad market sold off across the board on higher
volume.
With recent stalling action around the 1,500 level in the S&P 500 Index, combined with yesterday's (January 31) higher
volume selling in the
broad market, the rally in the S&P has lost some momentum.
Yesterday's price and
volume action in the
broad market produced the first true distribution day (higher
volume decline) in the Nasdaq since the big gap up of January 2.
Based on yesterday's price and
volume action in the
broad market, as well as the inability of stocks to hold their morning rally attempt, more near - term downside could be in store.
Due to the recent «distribution» (higher
volume selling) in the
broad market, our
market timing model is now on a sell signal.
Despite Monday's bullish reversal candles, we continued playing defense because one of the most important and reliable indicators of technical analysis is the
volume patterns of the
broad market (this was the focus of our May 3 commentary).
More broadly, as I've noted repeatedly in recent weeks, a wide range of technical indices measuring
broad market action and price -
volume relationships have demonstrated a clear pattern of declining tops.
In my previous blog post, I said that indecision and choppy price action near the highs «is often a warning sign that a substantial pullback may be just around the c orner (especially when combined with higher
volume selling in the
broad market).»
In my previous blog post, I said that indecision and choppy price action near the highs «is often a warning sign that a substantial pullback may be just around the corner (especially when combined with higher
volume selling in the
broad market).»
«The one big thing that Bogle knows — and explains so well in this slender
volume — is that buying and holding a
broad benchmark of stocks while keeping fees to a minimum leads to higher long - term returns than constantly trading in a vain attempt to beat the
market.
Correlation does not equal causation, as they say, and there are a number of factors that can drive higher average unit
volumes, such as having a drive - through, a
broader menu, and more
marketing spending, but the numbers above do seem to favor the fresh - beef chains.
When buying breakout stocks, keep in mind that overall
broad market health and
volume analysis both remain factors to consider.
Markets are strongest when they are
broad and weakest when they narrow to a handful of blue - chip names This is why breadth and
volume are so important.
One big challenge for swing traders right now is that
volume levels in the
broad market will likely begin heavily receding next week, as we approach the Christmas holiday.
As such, we wouldn't be surprised to see a lack of significant movement in the
broad market during the low
volume summer doldrums.
While it is important to follow the price and
volume action of
broad market averages like the S&P 500 or Nasdaq Composite, you should not focus only on these charts to determine the health of the
market.
With the main stock
market indexes posting back to back accumulation days (higher
volume gains), the odds of the
broad market staging a significant rally have increased dramatically in just a few days.
When the stock
market is in a strong, multi-month rally, it usually takes five or more «distribution days» (
broad - based losses on higher
volume) to end the momentum of the uptrend.
It's a value solution that gives us the ability to answer
market trends quickly and provide
broad market coverage, a key component of the EcoBoost strategy to deliver an affordable, fuel - efficient engine technology at high
volumes.
At a certain level of success as an author, it makes a lot of sense to go for the much
broader print
market in large
volume than the smaller ebook
market with higher average royalties.
That combo of requirements — curation and large
volumes of titles — Singer says «led us to the conclusion that the pricing model of not paying royalties in exchange for the
broad marketing and discovery opportunity that getting content into public libraries would provide to self - published authors» was the way to go.
It's important to recognize that our measures of
market action have much more to do with
broad market internals, spread behavior, price /
volume action and industry and security group dispersion than they have to do with simple observation of the major indices.
Despite the
broad market being down, my trading account saw $ AIG up 10.53 %, $ NEP up on huge
volume 7.38 %, $ PSYS up 1.53 % and $ ETFC left literally unchanged on the day.
Markets are strongest when they are
broad and weakest when they narrow to a handful of blue - chip names This is why breadth and
volume are so important.
Instead of pre-occupying themselves with a specific sector of the
market as the barometer for the overall
market, investors should continue to focus on
broader market measures such as breadth,
volume, credit conditions, earnings, etc. as their guide.
The latest drop in total coin value seems to have coincided with
broader uptake in bitcoin, the world's most popular cryptocurrency both in terms of
market cap and trade
volume.
The entrance of GMM into the local cryptocurrency exchange
market of Japan will lead to a
broader distribution of trading
volumes, which is better for the
market and for the investors.
Overall trade
volumes dropped by more than a third in February, as the crypto
market entered a steep correction followed by
broad consolidation.
While the
broad figures denote a downward trend in investment
volume, the U.S. commercial real estate landscape proved noticeably more nuanced, with diverging large cap and small cap
markets.