Looks like supply is drying up gents, though too early to call...

Looks like supply is drying up gents, though too early to call as trading is not closed for today, the volume contraction seems to be leading us to a pivot point of where we are due for an expansion. Unfortunately market direction isn't decided nor easily predicted by TA, but evidence would support that considering recent over-all market condition being quite poor, and IOU taking quite a slide over the past 8/12 trading days that we are due for a move to the upside. This evidence being the printing of our first higher high into a higher low, thus solidifying our first true up move in price since the glory days. (Though due to the 50MA and the 200MA technically we aren't out of the woods yet).

This chart should explain the relationship between volume and price. To break it down a step further, the days that small volume drive the price up and down significantly are the days that either Supply or Demand are greater than each other. What we have in our scenario is price moving up off diminished supply.

Also supporting this price action moving to the upside is NR4 or "Narrow range theory", the idea that the most narrow price and volume range of 4 candles of trading supersedes an explosive move according to trend.

http://thepatternsite.com/NR4.html

Fingers crossed!