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Thursday (6-7-07) the NYSE down volume percentage was very close to 95% which is a rare event, and has positive price influences going forward, a study following the late February 2007 +95% down volume day can be found at this link:

The SPX was just under 1400 that day, and ultimately bottomed in the 1375 zone within a couple of weeks. Although it is highly possible we may see further price weakness, the down side price risk following a 95% down volume day is moderate (2% to 4%).

To illustrate the one sided selling pressure on Thursday, here is the High-Low-Close (HLC) Price-Change-Volume ($PCV) indicator that measures the selling pressure in an index from each index component's price high and price low for the day question.  The SPX HLC $PCV indicator is the most extreme in the three years of data I have available for the index.  Such extremes are likely signaling a price low retest following any reflex rally, but I have nothing to compare with such an extreme.  The bottom line, is this intraday selling pressure tool is suggesting Thursday's action was heavy on capitulation.

Same extreme on the NDX HLC $PCV indicator following Thursday's action.

Normally, extremes in this indicator as generated Thursday are good for an immediate bounce, which we are getting today, but more importantly, this tool is saying the internals momentum lows are likely in, although there is a good chance more work needs to be completed in completing the bottoming process.


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