Monday, September 21, 2009

Tracking a Market Breakout to the Upside

Notice how volume expanded on the move to new highs, validating the breakout move. The volume was skewed toward the offer vs. bid side and came into the market above VWAP and above the volume bulge at the 1054/1055 level. That tells us that the market is accepting value higher, and it suggests that shorts had to cover when they could not push price below their overnight lows.