5-16-2012
A very interesting technical indicator is called Down Pressure. This indicator looks at all the stocks in the S&P500 and computes how many points gained/lost were lost and also how much of the volume moving into these 500 stocks was down volume.
Over the past 10 days, the average of these two figures is 73%, meaning that 73% of the points gained or lost in the S&P 500 WERE LOST and about 73% of the volume flowed into issues DOWN on the day.
THERE HAVE BEEN FOUR OTHER DAYS THAT MATCHED OR EXCEEDED THIS READING… JULY 22, 2002, OCTOBER 9, 2008, JULY 2, 2010 AND AUGUST 4, 2011.
THEY WERE EACH WITHIN DAYS OF VICIOUS MARKET BOUNCES HIGHER.