Volume Patterns: High Volume Churn
The Emini closed down 1.00 point at 1,558.75 on Tuesday. In yesterday’s Emini commentary we said that “No Demand” and “High Churn” patterns tend to appear at market tops. Well today we got the “High Churn” day. The chart above shows the 3 patterns circled – NoD stands for “No Demand” and Ch stands for “High Churn”.
“High Churn” days occur when the volume is relatively high but the range is small. You can read more about “High Churn” patterns here. In the volume indicator on the Emini chart above, high churn bars are colored green and volume climax bars are colored red.
My best guess is that the Emini will fall over the next couple of days until it reaches support. The first level of support is around 1,540 with the second level of support close by at 1,530. Keep in mind the COT data shows the Professionals are very bullish and so any weakness in the market might be short-lived.