Just after doing a post on bullish volume in UUP, supply showed its wicked face as major weakness is now apparent.
The weakness comes after UUP made a significant advance on Friday but closed even, on the low. Not only was the price action terrible, but volume was through the roof signaling that the professionals had their hand in this event.
The S&P 500 gained 3.2% this week which is definitely a strong move to keep the up-trend is intact. The only red flag is the decrease in volume which suggests that the Smart Money isn’t buying the rally.
And just like that, the rally is history. Today was the second major day of selling as the major indexes closed down over 2% – some closer to 3%.
The market is in correction and now the big question most investors will have is how far will it fall. Nobody knows, but all we need to do now is ride the wave down.
