The bottoming process on the SPY lasted from roughly October '08 to March '09 with enormous volume. As a "bottom" was put in place volume then tapered off until about April of this year. There was a stretch through the summer where the highest volume reading was somewhere over 300-million shares.
So on the chart below I have the most recent 3 sessions indicated where 300-million+ shares were traded. Only 3 days in the last 125 sessions have had such a reading, two of which in the last 42 sessions. Curious that the last two "surges" saw the market turn around the next day. I have another vertical line marked where, recently, volume registered nearly 300-million shares, and again price turned around the next day. These cycles are getting shorter. Is it a sign of the season, or something more curious?
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at firstname.lastname@example.org
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