In many respects today was a reverse image of yesterday.
Following are the Advance/Decline figures for yesterday and today:
| 24/5/10 | 1,002 | 402 |
| 25/5/10 | 407 | 1,025 |
And here are the figures for AdvVol/DeclVol:
| 24/5/10 | 1,284million | 288million | |
| 25/5/10 | 175million | 1,720million |
The figures for the 24th are extreme - but to get them virtually reversed the following day is even more extreme. This is getting really weird. :)
The chart above is somewhat esoteric. It is a relative strength chart of Advances/Advancing Volume.
The previous two times the ratio reached into the stratosphere were times when the market reversed significantly.
The first time was the dramatic finish to the June/July 09 correction which set in train the rise by the XAO up to the mid-October 09 high.
The second time was the less dramatic, but important, beginning of the Santa Rally which finished in early January 2010.
So - will history repeat?
We shall see.
There is no doubt in my mind that a significant rally will occur. Enough to reverse the current bearish sentiment? Maybe, maybe not.
With the market acting in such strange ways, anything is possible. To my mind, it means a very big move of far reaching dimenstions is coming. Which direction is the question.
Cheers
Redb
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