US 30 ?Fake Breakout: Volume not ConfirmingToday's 400pt lift in Dow was unconfirmed by volume which declined as price rose. VOLUME DIVERGENCE violates basic Dow Theory:
The session volume in each day's trading reveals nearly all the session volume was traded before the thin air lift at the end of day.
A move against trend must be confirmed by increasing volume to be a true trend change, else it is merely a countertrend movement.
Expect this rally to fail and return to consolidate around price rotation area. Failure will likely lead to capitulation & panic-selling break down.
I could be wrong, but I'm buying a single put Wednesday to test my theory!
This is not investment advice, trade at your own risk and good luck!
