hotfire's - money is made friday, page-37

"....but then if they have a big slam dunk tonight on bigger volume, well it may look a tad softer"

mmm, yesterday's 7day chart for the DJIA is now complete and it didn't go according to plan with a bit of a slam dunk

after that change, of tune time and imo clearer to see on a smaller period

2charts below both DJIA,

1'st is a 3day chart with their Friday's trade yet to complete the current bar and we can see that the action above the top
of our old ‘trading range’ is much easier to see that it’s NOT bullish

If we imagine that they’ll have their average volume tonight, I’ve penned in that last volume bar, it should tally about 500M for the 3day period.

If we go bar by bar along the top of the TR ie. The last 6bars,

1. Is an average volume wide spread closing high bar, yep okay, would've preferred a bigger sign of strength though with more volume

2. Next, similar volume making lower low, wide spread closing lowish, like a 2bar reversal mmm

3. 3’rd bar is showing our first sign of weakness = narrow spread closing highish as an upbar on LESS volume, mm

4. Makes a higher high lower low on an INCREASE in volume closing lowish, mmmm

5. 4’th bar is our second sign of weakness = again narrow spread upbar closing highish on LESS volume, mmmm

6. CURRENT bar, with still a day to travel, will have an INCREASE in volume no matter what, making a lower low and possibly a lower close and also a lower high, mmmmmm

To sum up, the action above the range is a sign of bearish activity atm, NOT bullish, more volume and spreads on downbars with lower closes,
and LESS volume and spreads on upbars

The lower chart is an intraday 10min which imo may be showing some buying coming in, BUT for the longer term

ie. Day timeframe it may mean nothing as they could very easily flip their buys midway thru the following days trade. We will see.