Monday 7 May 2007

Low Volume Day

The Emini closed unchanged at 1,514.25 on Monday. Today's volume and range were ultra-low: 0.5 million contracts traded and 3.75 points. We're definitely running out of steam.

The chart below shows the Dow index reaching new highs but on declining volume (green line). Auto-Trendlines have been added to the price bars and Volume is shown below. It was so quiet today that I decided to "jazz up" my volume indicator - it's now a riot of color!

Volume Climax days are colored red
Volume Churn days are colored green
Volume Climax & Volume Churn days are colored magenta (none shown)
Low Volume days are colored white

As you can see, today was a Low Volume day - the lowest volume in the last 20 days. Check out this post on Volume Churn and Volume Climax.

Dow Index Image

By contrast, the Russell 2000 Index made a lower high and reversed direction. Unfortunately, there is no volume data for the Russell 2000 Index. But futures volume was very low. A similar pattern was seen on the NASDAQ index.

Russell Index Image

Lastly, an updated chart of the Composite Trend Oscillator. As you can see, it caught the bottom of the last rally 5 days ago quite nicely. It has now reached a level of +90.

Emini Composite Trend Oscillator Image