Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

S&P 500: Rebound Came In Low Volume

By Tim OrdMarket OverviewMay 25, 2022 09:31AM ET
S&P 500: Rebound Came In Low Volume
By Tim Ord   |  May 25, 2022 09:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
  • SPX Monitoring purposes; Sold 5/24/22 at 3941.65= gain 1.033%; Long SPX on 5/20/22 at 3901.36.
  • Monitoring purposes GOLD:  Long GDX (NYSE:GDX) on 10/9/20 at 40.78.
  • Long Term SPX monitor purposes; Neutral

We updated this chart form yesterday, when we said:

“Bullish intermediate term setups occur for the market when the NYSE McClellan Summation index falls below -700 (current reading -846) then rallies to +1000 in around two months.  Back in March the Summation index fell below -700, but didn’t get above +0 on the next rally. Again Summation index is below -700 and our first target is near 4100 which is the previous high of last week.  If indeed that resistance does hold, its very unlikely the Summation index will reach +1000.  If Summation index fails to get to +1000 then another decline will be expected that may hit new lows.” 

The summation did turn up yesterday but has not shown any strength so far, which is bearish.

The market should see strength off a low to confirm a reversal. Yesterday’s rally off Friday’s low traded above Friday’s high but closed below the high, and volume came in near half of Friday’s volume, which is a bearish sign. We were hoping today we would see a “Sign of Strength” to confirm the reversal; instead, the market gapped down and traded below Monday’s low on higher volume, suggesting SPDR S&P 500 (NYSE:SPY) may attempt to test Friday’s low. Both VVIX and VIX were up today, suggesting a short-term pullback is possible. Our scenario is that SPY (SPX) may test Friday’s low, and if the volume is lighter on the test and Panic is present on the TRIN and Tick, a bullish setup is possible. Sold long SPX today for a gain of 1.033%.

Above is the monthly chart for SPDR Gold Shares (NYSE:GLD) (ETF for gold). The monthly RSI remains above 50, suggesting the longer-term trend is up for GLD. The pattern forming appears to be a Head and Shoulders bottom, and the Right shoulder is forming now. The bottom window is the Bollinger bandwidth, which is very low, matching near the time back in mid-2018 when GLD started a strong rally that lasted nearly two years. So far, GLD has only retraced 38.2% of its rally that began back in 2016 suggests this sideways consolidation is at the halfway point of the move up, giving a target near 250. With the monthly Bollinger bands pinching, a large move is nearing.

S&P 500: Rebound Came In Low Volume

Related Articles

S&P 500: Rebound Came In Low Volume

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email