Equity Observations

Volume, the tape, continues to contract as gaps are filled and swing resistance are breached. In addition, the recent price highs remain unconfirmed by momentum. This has produced a negative divergence. Subtle hints, nonconfirmation and negative divergences, usually material at turning points. Contracting volume and waning momentum are characteristic of rising wedge patterns.

Skepticism must reign until technical confirmation, such as a sign of sign through resistance or significant contraction of volume at critical support, materializes.

NYSE Composite ETF (NYC) with Exchange Volume


Financials ETF (IYF)