Volume increases on IYR; range contracts even further.
In what’s beginning to look like its been taken straight out of David Weis’ training video on ‘trend reversals’, volume has surged and range has contracted drastically.
The last update had range contracting down to 1.83% (from 9.77%).
Now we’ve got yesterday’s range down to 0.60%; volume up to 18-million shares … the highest since October 2nd, last year.
One of two things is happening.
It could be absorption for a new leg upward to ever higher, highs.
It could be distribution and ultimate reversal.
There’s certainly enough fundamental evidence to show commercial and residential real estate, may have gone off the cliff.
Still, we have headlines like this, from ZeroHedge.
The key is the “hottest real estate market since 2007”, part. Remember this magazine cover?
We’ve got what appears to be conflicting data. ‘Over the cliff’ on one side and ‘red-hot market’ on the other.
The answer’s in the price action. We’re at a potential (major) inflection point. The market leads the news and not the other way around.
If we’re at the pivot, about to head lower, bad news will be forthcoming after the reversal’s in place.
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