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Normal Post Holiday Operations - Nasdaq


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#1 SemiBizz

SemiBizz

    Volume Dynamics Specialist

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Posted 03 January 2007 - 07:42 PM

It was an exciting ride today. As the gap up held at first, extended and then collapsed on itself. There were early signs. We had a strong volume spike with heavy institutional buying on the open. There were early trouble signals in the second hour when the 3 min chart turned DOWN on 5 successive red candles. At the end of the day, all we had basically done was exercise the trading range, getting under it and finishing down.



Now let's look at the last... post-holiday - Monday after Thanksgiving. Today can be compared with that on a price and volume basis as well.

High........ Low........ Volume.......

11/27 2454.17........2405.92.........1.95B

01/03 2454.62,,,,,,,,2394.66.........2.54B



Now something else stands out here, if you look at that 11/27 trading day, that day established the "center" of the trading range to follow. In this context, considering the fact that on much stronger volume the Nasdaq was able to blowout the bottom of the previous trading range and not get much over it... it looks to me like in the grand scheme of things from a volume perspective this is our first good clue this market is ready to give it up. However, we may be trading in this range awhile longer before it does let go. The first day we close back under the low of the trading range (2405.92) will be a signal of further decline to come.



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