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tdp2664 InvestorPlace Technical analysis doesn’t tell us everything about the future movements of the market. But, like tracks in the snow, technicians' charts graphically show the history of price movements and provide the ability to study and interpret the past for clues as to direction. And they even tell us of probable future resistance and support areas. Yesterday's commentators were all aghast over the record of four consecutive days of over 400 points each for the Dow Jones Industrial Average. And they attributed yesterday's recovery to all sorts of phenomena: rumors of a short-sale ban in Europe, an upcoming meeting of the leaders of France and Germany, corporate insider buying, etc. On Wednesday, I discussed the huge blocks of stocks representing short sales that were purchased at pre-programmed levels. This practice, called "high-velocity trading," is what has accounted for the huge swings of the past four days accompanied by the highest volume of the year. Yesterday's 1.88 billion shares was the lowest of the last four days, with the others over 2.5 billion. Only computers programmed to automatically execute thousands of trades in minutes can account for such volume. This was confirmed by Dick Grasso, former NYSE chief, who yesterday said that less than 10% of NYSE volume came from the public. Note that two of the last four days closed
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