5 JUN 2010, Saturday

• One item that caught my eye after Friday's close was the ratio of down volume to up volume.
• Ordinarily when you see distribution spikes you'll see a 10:1 to 20:1 down to up volume ratio or up to down volume ratio.  Check the chart above for yourself.  I think you'll be able to spot the unusual reading if you stare at it really, really long and hard comparing to prior history (kidding).
• What does a 120:1 ratio indicate???  Capitulation?  Or is it merely fear of holding over the weekend?  And if so, do they reverse it on Monday with a buy fest?
• This market continues setting new record readings in traditional indicators on both the upside and downside.  Sure makes it tough to use history as a guide when we keep making new history.
• Still highly volatile and whippy...and negative.  Check the charts on the sidebar.
• Always amazing how often simple trend lines can act to halt or stall price action.  Example...black trend line has been there since the Flash crash.  Trying to find new lines.
• One day at a time.