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

Friday, August 26, 2011

Sellers Emerge Ahead of Bernanke Speech

NEW YORK (Reuters) - Major stock averages fell on Thursday as traders were quick to shed positions ahead of a keenly awaited address by Federal Reserve Chairman Ben Bernanke on Friday.

A report showing U.S. job market weakness and concerns over a sharp drop in German stocks were the latest global economic concerns, fueling a wave of selling that picked up steam.

"They're selling ahead of Bernanke and being fairly cautious in their positioning," said Len Blum, managing partner of Westwood Capital LLC in New York.

New U.S. jobless claims rose last week, the government said, suggesting the job market is still struggling.

"It's just a skittish market," he said. "You had jobs this morning, which wasn't a great thing. It's not a very bearish sentiment around here... It's just everything -- a convergence of factors -- including the European situation and unemployment."

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