U.S Stocks

The 5/6 "flash crash" was created on 2.57 billion NYSE shares traded. This low has been tested twice on diminishing volume. The first cluster or taps saw volume shrink to 2.3 and 1.9 billion shares. Volume shrank to 1.65 billion on the 6/8 or second tap. Like a bouncing ball dropped from a fixed height, the energy of the decline has dissipated (released) over time.

Can the flash crash lows be broken? Most certainly. A sustained break, however, requires surge in energy or a technical sign of strength. The force behind this "correction" continues to reflect deterioration rather than augmentation. Until this changes, the setup favors reversal as the cycle date approaches.

S&P 500 with exchange volume:


The NetHL%(E), a measure of internal breadth, shows a positive divergence with price. This is something to watch, but not get too excited about.

NYSE Internals: