Wednesday, July 08, 2009

A Look at a Transition Turnaround

Here we see the transition bottoming pattern mentioned in the Twitter comments intraday. The high volume decline was followed by a nice bounce and then a lower price low in ES that occurred on lower volume (and lower volume at bid) and non-confirmations from NASDAQ and Russell indexes. Those were followed by a significant surge in buying, taking us back above the day's VWAP. It's a key pattern to watch for on different time frames.