Up until last week, volume pattern was positive. Then it all sorta went to hell, with no one interested at all. We could say it’s the summer effect. But maybe, just maybe, it’s finally going to correct.

This is a daily chart:

SPY Daily chart, August 6 2013

According to the Wall Street Journal, there was $500MM of buying on weakness on (SPY: 257.11 +0.52%) today (May 27th). Crazy-nuts, somebody’s buying. And here I am, sitting and thinking the top is near.

The trick is to buy when everyone is fearful and to sell when everyone is greedy. Is the majority fearful of the top at the moment, and is it the time to buy? I’ll look at the technical detail this week, but at first glance it’s over-overbought. And so far from 200MA.