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SPY ETF Price Volume Trend: Stronger ?
October 5 ( From Stockcharts , Columbus Dispatch, Barchart, TradingView )
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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...
Since we broke the Major Rising Wedge Support Trendline on August 20,
PVT level cratered but at a lower level that the previous severe
correction on October 2014. ( See Chart Below - Bottom Panel - Ellipses )
The SP500 made the previous bottom on August 24 2015, another one
on September 29 2915.
( See Chart Below - Bottom Panel - White Vertical Lines - Red Trendline )
From August 24 to August 28, we had a strong technical rebound
followed by a weak dead cat bounce from the PVT ( did not even
reached October 2014 level ). ( See Chart Below - Bottom Panel - Grey Trendline )
We had a second rebound wave from September 1 to September 17;
that second strong rebound phase since the broken wedge for the
Mighty SPY but the PVT got a lot weaker. The Spike in price on
September 17 bring a lower PVT than the previous day; that move was done without volume indicating a divergence and a fragile uptrend as shown by the chart below... ( See Chart Below - Bottom Panel - Amber Line )
We had a third rebound wave from September 29 to October 2; this is the strongest rebound in terms of PVT since August 24 and the first real uptrend with stronger volume, a new Trend ?
But most interesting factors to me is that at the same time we are testing the Resistance Trendline on PVT ( See Chart Below - Top Panel - Yellow Line - Ellipse ) and the 20 DMA zone ( Day Moving Average ) on SPY now at 194.59. ( See Chart Below - Bottom Panel - Amber TrendLine - Ellipse )
"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
SPY ETF Price Volume Trend: Stronger ? $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 ( SPY ETF - Top Panel )
Price Volume Trend ( Bottom Panel - 7 DMA Blue Line )