I noticed several times that volume during rally days is much smaller then average volume. And also during last week the volume accompanied with selling was much more higher. You can see this on charts below.

I made stock market index chart analysis today. Nasdaq already touched its support area. SP500 and Dow Jones have some space for further decline. So I expect that selling in SP500 and Dow will continue till these indexes will come into these support areas.

If there will be some bounce on Monday , it could be good opportunity to enter some short trade in SPY or DIA (Index ETF) or enter longs in “short” ETFs (like DOG or SH) or “Ultra short” ETF (DXD or SDS).

Volume and support areas you can see on charts below.

This entry was posted on Saturday, October 20th, 2007 at 1:44 pm and is filed under Stock market chart analysis, Stock market comment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.