swingtrader930 (38.80)

Lots Of Churn And It Ain’t Butter . . .

June 22, 2009 – Comments (1) | RELATED TICKERS: DOG , SIJ

In a recent blog of mine there was chart showing a 10-day stretch where the market traded in a very narrow range just under the 200-day EMA.   Such a narrow range, or low volatility, for such an extended number of days usually indicates the market is building up strength for a significant move.   However, the direction of the move is not always certain.  Today the direction has become much more apparent.  Volatility showed up in today’s 3% move downward.  Signs are also showing up in June’s monthly chart.

So far June's volume is up big as seen on the volume chart.  And we still have a lot more shares to be traded for the month.   The S&P has run into resistance and bouncing off to the bottom side.  Another 3% down day tomorrow could be the straw that breaks the camels back.  I’m not a bull nor a bear.  I’m just pointing out some signals and trying to get lined up with the market.  Keep in mind the long term monthly trend is still DOWN.  Protect yourself.