Just when it was starting to look like the stock market couldn’t go down, the Dow Industrials sold off 210 points to start the day. By the end of the session the broad averages had recouped nearly half of their earlier losses, but enough technical damage had already been done to suggest that weakness will prevail for at least another day or two. This is notwithstanding a short-squeeze rally into the close that appeared to stall at a Hidden Pivot resistance noted in the E-Mini S&P update below.
Reposted by Rick on behalf of ‘Seneca’:
Friday’s close was an all time high close. Monday the NYSE declining volume was 301% of Monday’s NYSE advancing volume on a UP closing INDU day. Three or four more heavy declining volume ratio days could indicate that we had a major top.
The following table shows the ratio of advance decline volume when the ratio is greater than 150% or (1.50 in the table above) notice 10/06 and 10/09 dates as both where UP closing dates in the INDU index.