Very Low Volume & Range Often Make For A Bearish Combination

In general very low volume and range when the market is not above its 200ma will lead to a pullback. I showed several studies along these lines in the subscriber letter this weekend. One with both short and intermediate-term implications is below.

Stats across the board including Win %, Win:Loss Ratio, Profit Factor, and Average Trade all favor the bears. This is the case not just for a few days but even for a few weeks.