Closing Stats

I couldn't make this up! Remember yesterday I outlined a level the SPY needed to break to entice longs back in the market? I said, The shorts were already squeezed, now it's the long's turn" to be set up in a bulltrap. I even said volume should pickup when the SPY breaks out. This was the breakout level  I showed you.

And here are the Price/Volume relationships for today:

All NYSE components: Dominant P/V relationship=Close Up/Volume Up, 3042 followed by second place, Close Up/Volume Down, 2225.

The DOMINANT relationship was close up and volume up, meaning, what was expected to happen on a break of resistance, did happen, the longs came to the party.

All of the averages today had the same dominant P/V relationship-Close Up/Volume Up.

The DOW 30= 19 stocks
The NASDAQ 100= 64 stocks
The S&P-500=252 stocks
The Russell 2000=1027 stocks

Normally, Close Up/Volume Up is the strongest, most bullish Price/Volume relationship, but you must always look at the relationship in the context of the market. The context we were looking for was a breakout above a resistance level which would draw the longs in and set them up for a bulltrap; today that happened. Does that mean it's over? It could be, or they could set up a larger Bull trap, but what is important is what was expected to happen on a break of resistance did happen.

Going through the charts today, I also saw a lot of breakaway gaps to the upside, they may be considered exhaustion gaps, it's too early to tell, but much like a capitulation gap down, an exhaustion gap up often tells us we are nearing a point of saturation or a level of overbought. As I said yesterday, many of the shorts who were squeezed over the last week and a half, likely entered the market today as longs, putting them in peril of becoming 2x losers. If there's one thing about the market that rings true throughout, it's that Wall Street will always find a way to make as many people wrong as possible.