Well it appears there is some positive news coming out of Europe this morning with European leaders shifting the rules of the game to make it easier for countries and banks to get better access to rescue funds. The Euro is loving this, up around the 1.262 area against the dollar as I write this.
When heading to the charts, something that has stuck out to me during the recent market weakness has been the buying (green line) and selling (red line) volume that I’ve discussed a few different times in the past few months. While the S&P has been dropping, buying volume has actually been rising. I think volume is extremely important when taking a view of the markets and can’t be ignored. There have only been a handful of times where this type of divergence is not corrected in favor of volume, but like anything it’s not perfect.
Futures are up this morning, with the e-mini S&P trading around 1340-1345. A lot can happen during trading today muchness trading over the next few days but it appears buyers might regain control without any other major variable changing.
UPDATE: Equities are rallying hard today which has pushed the McClellan Osc. up near an oversold level. There is still plenty of trading left for today but this is something to keep an eye on. We last saw an oversold McClellan on June 19th .
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