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This morning a ran two posts looking at the possibility of the market moving higher after the first of the year. Let me plan devils advocate with those posts with the above chart of the SPYs. Notice that the latest rally -- which took us through key resistance -- occurred on diminishing volume. This is not what we want. Instead we want increasing volume that shows people are more and more interested in the rally.
This goes to an important point: no rally is prefect. There will always be technical flaws. Technical analysis is as much about the weight of the evidence as each piece of evidence.