Fourth, Cumulative Volume (CV) in the S&P and Dow eked out new highs into the May, August, and mid-September short-term highs with a noticeable new high in COMPX. But on the futures front, none of the contracts, including the S&P and NASDAQ Eminis, or Dow futures CV has gotten anywhere near the new highs made toward the end of May. That negative divergence underscores the first since the intermediate rally began last fall and amplifies the lack of faith the futures-buying crowd has had in market strength over the past four months. And since futures are, by definition, a forward-looking market mechanism…
Daily S & P 500 with Cumulative Volume (CV)
Weekly S & P 500 with Cumulative Volume (CV)
Fifth, our Call/Put Dollar Value Flow Line (CPFL) peaked back on June 11. That is the first negative divergence in that indicator since CPFL began moving higher following the mid-November price lows. Not only has the indicator failed to keep pace with pricing for the better part of the past four months, last Friday it sank to another new short to intermediate-term low and was last plotted below an uptrend line stretching back to the October 2011 lows. Clearly, this cohort of market participants, like futures players, has had little confidence in market strength over the past several months.
Daily S & P 500 Emini Futures contract with Cumulative Volume (CV)
Weekly S & P 500 Emini Futures contract with Cumulative Volume (CV)