Volatility Continues

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Stocks continue to be volatile. Stocks have crossed the 50 day MA over 20 times since January. Monday was day 19 for the daily equity cycle and stocks once again breached the 50 day MA.

spx

For the second consecutive day stocks closed lower. And also for the second consecutive day stocks printed a large Buying on Weakness number.

bow

Stocks printed a big 387 million BOW on Friday. They followed up with a huge 1.236 billion BOW today. These BOW numbers are quickly adding up. Which aligns with our expectation for this daily cycle to form as a right translated cycle. Stocks will need to break above the day 9 peak of 2132.82 in order to do so.

The Miners still have not confirmed a new daily cycle.

Miners

The Miners closed lower on Monday and came within 1 cent of the day 25 low.

gdx

The low for day 25 was 13.17. Monday’s low was 13.18. The Miners have yet to confirm a new daily cycle. Since the Miners have traded sideways since day 25, I would prefer to see the Miners break lower. That would make today, day 31. It would also allow us to reset the daily cycle count following a swing low.

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3 thoughts on “Volatility Continues

  1. Can such HUGE B.O.W. actually be interpreted as “If even such large buying pressure can’t lift price, then we are REALLY in trouble on the downside”?

    • Bob,

      I also have the same thoughts. It has also been suggested that these HUGE BOW numbers are the result of Fed intervention. I do not know how to tell if this is Fed intervention or not. While not a precise timing toll, so far these large BOW’s do result in bullish follow through.

      LM

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