Yesterday’s 200 point decline in the Dow was accompanied by some of the heaviest volume we have seen in a while.
On top of that, Monday’s trading qualified as yet another 90 percent downside day, where 90 percent of the volume was on the downside. This is the second 90 percent downside day in a week, following last Monday’s.
Lowry, the oldest technical analysis service, noted this morning that “the development of two 90 percent Downside Days in the past 6 trading days is the most weakness exhibited by the market since the rally from the Mar. low began.”
– “Here Is The Test For The Bulls”, Bob Pisani, TraderTalk, June 23
One caveat: volume was heavier than it has been of late – but it still wasn’t all that heavy. I’d like to see a bigger volume selloff to confirm the end of the rally.