Stock Market Technical Analysis Blog
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In the market today momentum came to a halt as traders ponder the continuing declining volume. No one is sure if the Fed is willing or able to drive the S&P to retest the 1850 resistance level without investors joining in. Everyone knows a good portion of the daily volume we do have is short covering but take that out and there isn't a whole lot of volume left which indicates no new long-side buying is taking place, simply the Fed buying and shorts buying to cover. They might be able to keep it going but the past week and a half has been a 45 degree downhill slope in declining daily volume and the past two days have only been about two thirds of the 10 day average volume. This doesn't mean that the market rally will stop, however, only that this is the Fed's market and Yellen is wanting to make sure her name is in all caps at the top.
Trade well my friends
Alan
