hard · Volume Spread Analysis climaxes-tests-springs-upthrusts

An Index has been in a long-term uptrend. It produces an ultra-high volume up-bar into new high ground, but the spread is very narrow and the close is in the middle. The next bar is down.

Which bearish sequence is most likely beginning?

  1. A 'Buying Climax' followed by 'Supply Coming In,' indicating that professionals are capping the market.
  2. The start of an accumulation phase, as high volume always indicates buying.
  3. A 'Shake-Out' designed to trap short sellers before a final leg up.
  4. A 'Test of a Breakout' that has attracted too much attention.

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