a good post about vol

Let me answer what is TA. My 2 cents comment may or may not make any sense to you.

TA is a windsock. Not a crystal ball - Who has a one? Please let me know.

TA will help you to see where the support and where the resistance is. So you can profit from this room during intraday trading. I like TA. In chart, I believe.

When you read the chart, please do not forget the volume. The volume represents the strength and energy of the bar of that day. So far, I do not see any significient volume to support a breakup of the resistance.

Lot of people do not understand what is resistance? Resistance is selling pressure. For example, if you are a retail investor, you bought SPY at 90$, so when the buyers push the price near the price you bought, and if you do not see a good future of this SPY, then you will likely sell it with small loss or break even. So the resistance for this case would be the previous high.

You can see that if SPY goes up on next Monday, it has to break intensive selling presure becuase the guys who bought SPY above 89$, would love to sell the stocks and get away.

In the mean time, Short seller would like to take this opportunity to sell you more shares so as to take the share price to a lower level to benifit from it.

This kind of thinking is normal for every investor. When you are trapped at higher price for days, the first thing you want to do is getting out. It is not TA, right? it is human nature. So when you look at the bar, you should ask, why the price bar is decending, why it has a lower high every day? Because investor has no reason to buy the stock. So for the share holders, they have no way to get out without loss.

Of course, if there is a good News during weekend, this certainly will give buyers confidence and the good wish could drive them to buy stocks or hold thier stocks. Then the market would go higher.

But without these good news, I do not see any reason why buyers would like to buy SPY. If there is no buyer, how can the price be pushed up to higher level?

This is how I read the chart.

In chart, I believe. Volume tells.