paddington's bear, donkey and rabbit - tuesday, page-96

Here's a chart of the Dow Industrials showing the recent major pushes down with the volume marked for each push down.

Each push down to or close to the 10700 area is marked on the chart.

I've also marked the volumes associated with each push down.

Volume has declined relative to the volume on each push down since the biggie in early August.

Selling pressure has been abating - in the overall picture.

Obviously, there's still selling pressure on each decline as evidenced by increases within each decline - but in the bigger picture - selling pressure is slackening off.

On the chart I've also included an On Balance Volume Chart. It's a basic guide to whether accumulation or distribution has been occurring. Not perfect - but another help in interpreting market action.

The On Balance Volume Chart shows a steep positive divergence from price. That suggests that accumulation has been going on while the market steps sideways. If you think about it, that concurs with my observation that each major push down has showed lower selling pressure than the previous push down.

Trying to keep things very simple. Here's a Point and Figure Chart of the Dow Industrials. A double top break out occurred last night.

Good luck
Redbacka