Ron, some indications are there that we have seen a 'mini' capitulation on the NAZ today...QQQ trading volume, the up/down volume ratio at the low and the heavy put buying near the lows. i have to go through my list of end-of -day indicators though before i can officially call it a capitulation. imo, a rally from here would likely set us up for more downside at a later stage...for the bulls a true high-volume capitulation that involves the other indices as well would probably be the more desirable outcome for the near term. but we don't always get what we want...fact is, the new intraday low in the NAZ today was not confirmed by the other indices, and as such this is a bullish divergence.
however, this market is adept at setting traps of late. i also noticed that the late day buying occurred on shrinking volume and was highly concentrated in issues that are heavily weighted in the indices. looked a bit like manipulation by the big funds to me (which hold enormous amounts of CSCO, INTC, etc. and are therefore very much interested in painting the tape).
regards,
hb |
