The Dow $11,000, Buying it?

Like I said earlier today, today was going to be a volatile day. The EUR/USD is in decidedly, undecided mode as it formed a triangle all day long with each tick higher taking the market higher and each tick lower taking the market lower.

Dow 11,000 is a pretty big deal, psychologically, yet market wise it was akin to another day with the Dow gaining exactly a half a percent +.50%

The volume is the first thing that looks off, I think anyone would admit a breakout of $11,000 should see some volume.

That's not just the lowest volume in the last 4 days, that's the lowest volume in 189 days! You have to go into 2009 to find lower volume.


And the close...

A 2 hour rally retraced 62% and most of that in the last 5 minutes.


Here's the 1 min chart showing when the change occurred..

Here's the more important 5 min chart where we first see institutional money show up.

You can see the accumulation in white and distribution that led to sell-offs in red. Yesterday and today we saw nothing but a pure leading divergence to new lows.

There are a lot of other things I'll show you later in a bigger post, but I wanted you to see this. To me it suggests there was nothing behind this rally other then retail buyers and some market maker trades. Certainly the volume doesn't account for any institutional buying. This looks and smells like a head fake.