Friday, February 05, 2010

Midday Briefing for February 5th: Active Range Trade

1:59 PM CT - I've added the above chart to show how the enhanced volume did indeed lead to a downside break and range extension. In general, we can expect breakout and trending trade when relative volume is running quite high. We've made over 1600 fresh 65-day lows across the NYSE, NASDAQ, and ASE thus far today, suggesting once again that the intermediate term downtrend is intact.

With relative volume running well above average during a range trade, I am alert for the possibility of a breakout trade and range extension. Cumulative TICK should point the way toward whether or not we'll make that break; I'll be updating this briefing later in the day for additional perspective.