Always consider hidden risks
SP500 : Price Volume Trend: Grinding PVT within a Wedge ?
Aug 13 ( From Stockcharts , Columbus Dispatch, Barchart )
If you would like to receive our free daily markets updates, please Sign-Up
We observed that the Price Volume Trend of the SP500 tend to turn earlier
and or confirm the trend of the Mighty SP500 as you may see in the chart below...
The SP500 made the previous high on December 29 2014 and a new one on
February 25 2015 . Another one on March 18 and another on April 27 and the last
one on May 19. And the Strength of the PVT did not give us the strong rebound in
the Mighty SP500 if we compare those dates.
Since July 8 , we are into a strong rebound phase for the Mighty
SP500 Index but the PVT is not as strong :That move was done
without volume indicating a divergence and a fragile uptrend as
shown by the chart below... ( Grey Trendlines )
The last new high on July 20 was not confirmed by the PVT as the level of that
indicator was lower than the previous high ( June 18 ) then bringing a huge
divergence. Same pattern for now...
And we have a lower PVT today than the previous uplegs peak we
had; the divergence prevail...
( See ellipses - thick red trendlines - Bottom Panel ).
But the most interesting factor is that we tested on August 12 the Major Support Trendline from a wedge that started back on July 7 2015 on the Mighty SP500 and rebounded violently. As long as PVT and the Mighty SP500 stay above those Support Trendlines from July 7, the Market keeps its Grinding Technical Pattern.
( See thick Grey trendlines - Ellipses ).
"To fight and conquer in all your battles is
not supreme excellence; supreme excellence consists in breaking the enemy's
resistance without fighting."
-Sun Tzu, the Art of War
SP500 : Price Volume Trend: Grinding PVT within a Wedge ? $SPY, $SPX #Trading #Emini #ES_F #SP500
Price Volume Trend - a Definition
PVT is a leading indicator for future price movements. Although interpretation of PVT is similar to the OBV and the Accumulation/Distribution indicators, PVT more accurately demonstrates the flow of money. PVT adds only a proportional amount of volume to the indicator, whereas OBV adds the same amount of volume not considering whether the market closes up a fraction of a point or triples in price.
1.Rising PVT means new money, sometimes referred to as "smart money, " is flowing into the marketplace. The result will be that the present trend will continue. Accelerating PVT rise indicates that "the masses" are joining the new price trend.
2.If the PVT then levels off, it is often an early warning that the trend is finishing.
3.Declining PVT indicates that the smart money is liquidating.
4.If the PVT moves sideways or falls while the price is rising, the increase in price is not confirmed and a market top or bottom may be indicated.
SP500 Index ( Top Panel )
Price Volume Trend ( Bottom Panel - 7 DMA Blue Line )