The Dow (YM) is a classic example of selling distribution volume.
Chart 1 Daily
This shows 10 days of selling volume occurring at the top of the uptrend (indicated by the red arrows), with the Hawkeye trend going white indicating no momentum.
Chart 2 Weekly
This shows three weeks of neutral volume (indicated by the red arrow) with a Hawkeye pivot (red arrows) to the left so we expect a 3,5,7 bar reversal.
Note: the red arrows are placed for illustration only, and are not part of the software
Hawkeye Perspective
Until 15,640 is broken on close this is just a pull back in uptrend. If that price level is broken a new weekly downtrend will be in place.
Did you put out a warning 10 days ago that the market would be selling off? If you did I missed it. Yours is the fourth software company I’ve received this week that said their software predicted the sell-off. One was a “proprietary” fractal provider, another moving average combination, the third was a chart pattern teacher, and then yours with volume. The problem is that none of these companies published the sell-off before it happened. All of them came out afterwards and said, “see, our software predicted the sell-off well in advance.” So if you did put out a warning 10 days ago of a market sell off could you post the URL so we could see the warning?
How was the 15,640 measured ?
15,640 is the Hawkeye Crash Barrier and is shown by the solid green line under the cross and price bar. It is based on standard deviation and average true range.