Saturday, August 6, 2011

Dax 5.8.2011 high volume with some support

Lower stock prices seemed to interest investors as the volume surged almost to the highest level during this bull market.
Previously I wrote that the volume index hasn't confirmed the lower prices yet, but eventually this happened.
Interestingly, McClellan Indicator fell to even lower level than during the bear market 2008-2009...
Since TRIN turned positive, we could believe that some buyers are awakening, and thus, bears are becoming weaker.
Volume-based cumulative accumulation/distribution based on stock volumes also peaked into positive territory, so this suggests rebound.

Dax oversold/overbought indicator calculates supply (green) and demand (red). The sellers have pushed the red line almost too high, so within a week we should see a rebound.
Quite quickly, there are 9 stocks that made 52-week lows last friday. As you may notice, previously this happened 28.1.2008, 23.7.2008 and during Lehmann collapse. Even during the capitulation and the lowest index level in March 2009 we didn't get as many 52-week lows.