Yesterday was a KO recovery. It was a down day on big volume. However, instead of being KO’d, it closed well off its lows, showing strength. To me, high volume on a down day with a small range or which closes well off its lows, shows good absorption of supply. There was plenty of supply at the price level, but also plenty of demand to absorb it. All those buys and sells together accounts for the big volume.
Today’s volume was just over average, maybe 40% less than yesterday, and made a move about 2x yesterday’s making a new 52-week high. My point is, moving up seems to be the path of least resistance. After yesterday’s absorption, it took less volume to move twice as much up today.
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