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aa6 - Thu, 21 Dec 06 :

stoxx67,

however, volume is one of the major factors

it gives us an insight into the market's sentiment

if the price rises and buyers show, it clarifies their intentions, yet if the sp drops and we can't attract sellers, as was seen in the previous drops ie summer months where volumes were much higher, it tends to show that the holder's sentiment is changing ie because they are becoming more confident ie the sharp rise to £1.62....as holders hold their shares tighter and the buyers scramble to buy what is available and not forgetting shorters closing

furthermore, share availabilty is dropping as volumes almost disappearing when decreasing in sp, so any sharp buying, good news etc should cause the sp to rise much more quickly ie the recent jump to 1.62

and if one looks carefully at the sp graph there are important signals and signs which require support or resitance

looking at the graph actually shows a reversal and slow sp rise

so i disagree we are in a downtrend and are now experiencing the start of an uptrend

just my thoughts and i appreciate yours

good luck................

oh yes as the market can catch one out when it decreases, it tends to do the same the other way, why, because invariably human sentiment as does how the mind works en masse takes times to react to the small changes taking place

ie the market is an ole lady and she does not think alike immediately which gives us sp movements


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