Where's the volume?? Market overview for April 17

Ok. We have all heard the same story over and over for a few weeks now. This is a bear market rally. We should turn any day now. We are going down big. No jobs, bad housing market, commercial RE tanking, toxic assets, etc. etc. etc.

I will leave the discussions about the economy to the so-called experts. I have my charts to guide me and my trading account. This is what the chart of the S&P is telling me. It does NOT care what I or anyone else thinks. It will go where it will go. Period. All we can do is try to read the tea leaves and ride the wave.

So, looking at the daily of the SPY, one question comes to mind: Does history repeat itself? It usually does (notice the 'usually' here). I am not hedging, but my analysis only gives me history to look at to try to determine the future (occasionally, my analysis is wrong). History tells me that during periods of low volume gains in the SPY, especially recently, followed by a reversal candle, the market usually goes through a correction phase. I anticipating a reversal in the coming week - how severe is yet to be determined. Ideally, I'd like to see the SPY challenge its 50MA and either make a clean break below, or bounce and continue its upward move. Either way, I'll be ready to take advantage of any opportunities - long or short.

On Friday, I took a couple of low risk entries for reversal from resistance areas for the ES/SPY. The first one was stopped out for 20c loss, and the second one a 10c loss. I completely ignored my one good signal from my TA system to go long SPY at 11:30 which would have caught most of that nice reversal move. I just don't feel comfortable going long right now - but with an 80% win rate on my signals, I really should pay more attention to it.

We'll see what BAC does tomorrow pre-market. Should be a very interesting week indeed.

Good luck with your trading.