Next Stop, To The Top? No, Says Negative Volume

SPX falling wedge 11.02This evening a fellow trader over at Stockpickr.com pointed out a possible falling wedge on SPX best seen on a 30 or 60min chart.  If broken to the upside with increased volume, this could potentially propel us enough to test our highs.   If one were to have a Bullish bias, you would enter as near to bottom support as possible with your stop beneath it for a low capital risk entry and possibly trail a stop.

SPY down vol 11.02Over the longer term, however, I’m not too concerned on these intraday setups however as the chart to the right demonstrates, negative [down] volume continues to rise while positve volume has been dropping.  The distinct Bearishness of this is undeniable and dictates shorting any pop.  Therefore there’s nothing yet to change my mind; I shall continue to short at overhead resistance. [HT Ryan]

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