Stock Indexes Hammer Candles Big Volume

---

SPY We did indeed confirm a Distribution phase today but, also acquired an Accumulation day in volume with a hammer candle. The criteria for blow off bottoms is nearly double the average volume. That didn't quite happen, but clearly the strong volume is encouraging. I am keeping my eye on the 50 weekly moving average. Another up day with decent volume and a close above that level will at the very least bring some renewed confidence to the badly beaten up market.

QQQ Did a fake out when early on it broke the 200 DMA support levels. Then, it came back through and wound up closing strong with its first close above the floor trader pivot. It rallied right up to the 50 weekly moving average and settled beneath. That is now the area to watch tomorrow.

IWM The 50 weekly moving average is the area to clear before we begin to discuss a bottom. Like SPY, strong volume.

ETFs:

GLD Small rally after the market closed, but technically had a distribution day in volume since was the highest it has been in quite some time, and the NY closing price was down from previous close.. If fear is subsiding, would consider taking profits on recent longs.

SLV Just the opposite in this metal. Huge volume spike on rally.  Major support at 39.20. Some possibility of a blow off rally when volume spikes like that so if long, use trailing stops.

OIH** Still watching but no position yet. Held the 200 DMA today which was a great buy opportunity if you were watching. Also closed above the 50 DMA. Now, will watch for an entry again.

IYT 88.90 did not hold initially, but it did rally above it and closed with a hammer candle without the strong volume pattern. Gets through R1 and could see the 50 weekly moving average.

IYR** Did double the volume today with a hammer candle so a really good one to watch for a bottom.

TBT I know many longer term traders holding this ETF thinking that rates will go up. They are now at historical lows. Only a move above 29.80 the low from 2010 could possibly reverse the current trend.

For more detailed analysis join me, along with hundreds of other subscribers, at Mish's Market Minute and get my daily trade picks, trade alerts, training videos, and exclusive analysis tools. Sign up for Mish's Market Minute now and get a free 2 week trial!