Volume leads price.

Whenever you see heavy volume stacking up long or short it’s a good bet that’s institutional money.

And in our opinion it’s the institutions that you want to be on the same side as.

Retail money, otherwise known as Mom and Pop ingesting market musings from journalists, are usually the side you don’t want to be on.

If we were pure technicians we’d say the S&P 500 will go down to about 850. That’s its 50-day moving average with a bit of symmetry with its previous move down.

But we’re realists. The market does what it wants.