my current read
Posted 22 January 2007 - 08:36 PM
It's the illiquidity, stupid !
Posted 22 January 2007 - 08:57 PM
The Nasdaq is in a sideways consolidation pattern.. The two most important trading days of the recent period are 11/27 and 1/3. The Nasdaq rose on fainter and fainter volume and then we had huge volume off the top. Presently we are working our way to test that low of 1/3 - 2394. The decline in volume on the way down today is a tip that we're probably going to try to retest the top of that 1/3 candle(2454) on a bullish spring before we finish the move down under that 1/3 doji. I see 2350 near term after that. So Up, Down, and Down. Tomorrow's volume should be stronger than today, and that's been bearish of late. We may see a gap and crap.
Overall, what we are dealing with is rationalizing what happened on the 1/3/2001 all time high volume day, when interest rates were cut a Full 1%. The trading range was 2251 - 2618, closing on the high, we are in that trading band presently.
Gann would have chuckled this year on 1/3/2007 looking at that high volume doji type of day. He was big on anniversary dates.
Edited by SemiBizz, 22 January 2007 - 09:05 PM.
Price and Volume Forensics Specialist
Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"
Volume is the only vote that matters... the ultimate sentiment poll.