Chart of the Day: Expect a Test

Yeah, a test of the recent low (normal btw) — at a minimum — is highly likely. At least that’s what the graph I marked up last evening points to.

The ovals in the top panel capture previous Dow bottoms during the attention-grabbing declines so far this year. In the bottom panel I highlight on balance volume for the same period. 


You can see what volume looked like this year when the first bounce didn’t hold (red ovals) — a sort of saw tooth pattern — versus the one time it did (green) — a straight shot higher.


Note the current pattern:

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