NYSE volume was lower yesterday (when it tanked) than the day before (when it rallied). Think about that.
There are some really cool wave counts being tossed around this morning showing the potential for a larger ending diagonal. The triangle is out, but an ending diagonal would be awesome.
And it could explain the lower volume.
Lower volume relative to an up day has been very rare in this market since 2009. It's doesn't matter that total volume is 40-50% lighter than it was pre-crash. It matters what volume is relative to specific points in the market.
There is a 1:1 Fib extension target at 1959.16. There is also an area of Fib confluence at 1948.51-1952.86.
Failure to reach these levels, especially with lighter on-pace volume, improving A/Ds and ticks would have me buying calls.
The caveat today is the 10-year. It's heading the wrong way today. If it persists, there may be a problem in Equity Land.
If not, an ending diagonal to new highs would be a lot of fun.