17-Mar

Market shakes off yesterday’s reversal

In respect for the Irish and St. Patrick's day, the markets finished in the "green" for the day. The market shook off yesterday's reversal and rallied strong outing in a 90% up volume day. That is 90% of the volume was in stocks that were advancing. In intermediate term rallies you want to see volume in advancing stocks. Yesterday's volume was 40% in advancing stocks, not too bad considering the reversal day we had and closing at its lows. The MA of this indicator is now approaching 55%, this has led to the rallies staling in the past. (Chart below)

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