Market Loses Nearly Half Of Short Covering Relief Rally In A Few Hours On High Volume, And A LHLL Deja Vu
Once again the actual value of accumulation volume can be seen today: after a 10 days short covering rally on fumes pushed the market higher by nearly 7%, one day alone was sufficient to cut the rally almost in half. The bounce is now back to the half way point of the most recent decline, and just above the half way point of the bounce, at just under 1,060. It appears Goldman's technical charting on the 55/200 DMA cross was spot on.
Note that this chart is just a little date, as stocks closed at 1,062.50
And yes, as usual, the volme on down days is incomparably higher than that of up days.
Lastly, note not only the Lower Highs, Lower Lows, but that the market is repeating the identical drop regime as was seen during the last plunge.
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