About the Price/Volume Relationship

In last night's "Daily Wrap" I mentioned the Russell 2000 was the only major average to close green yesterday, it was also the only major average to have a dominant Price/Volume relationship which was "Close Up and Volume Down", I said this is the most bearish of the 4 possible relationships, which may seem counter-intuitive being it closed up, but when you have a dominant P/V relationship among the component stocks, you need to pay attention, especially when it is the most bearish. The reason it is most bearish is that is shows the advance was on very thin ice so to speak as buyers had no conviction as the volume showed in the dominant relationship.

Not surprisingly, the Russell 2000/IWM is thus far today's biggest loser

Down -1.60% and by far the worst looking of the major averages.