Today is quite possibly the most bizarre day in the markets of late. NYSE breadth was extremely negative all session, while equity markets were relatively flat and volatility pushed to even greater lows. I described the day in the comment section as if a number of people were trying to sneak out the back door while others were not looking.
But the number of those “sneaking” was pretty light as volume on the SPY was the lowest in nearly two years and below that of July 3. Truly amazing how anaemic markets have become. They have that feel of one more push at hand. Where the volume would come from, I have no idea but it has that feel. Especially with volatility just pulling back on a regular basis.
So we are forced to sit on hands longer and wait for a trend to develop. Another comment I made on the site today was in regards to the Russell (IWM) and how price came to the zone and was able to pop right in. You should not see price action like that. On a closing basis the zone held but all sustainable up trends I have studied have not had such a characteristic where price pierces intraday.