Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Thursday, July 15, 2010

The Big Mo

by Mark Hulbert Wednesday, July 14, 2010

Commentary: History suggests rally will continue for at least a few more days

It would appear that the stock market has built up enough momentum to keep the rally going for a while longer.

By rising for six straight sessions, in fact, the market possesses significantly above-average prospects of continuing to perform well over the next couple of weeks.

That at least is the conclusion I drew after analyzing all past instances in which the Dow was able to rise for six days in a row.

It turns out that, since the Dow Jones Industrial Average (NYSE: ^DJI - News) was created in the late 1800s, there have been more than 600 instances in which the Dow's wining streak lasted at least six days. That's more than a big enough sample to support some interesting statistical tests.


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