Volume Spike Investor

Today could represent a ket technical violation in shares of Merrill Lynch & Co. (NYSE: MER).  Shares are down 10.5% at $24.65 as of 3:10 PM EST.  We have seen almost 39 million shares trade hands, compared to an average daily volume of 28.7 million shares.

The key level to watch is $24.69.  That isn’t a 52-week low or multi-year low, but that $24.69 level does represent the lowest closing price that was seen back on July 15.  On an intra-day basis, we saw lows on that day and the day after of $24.58 and $23.64.  If we close under the $24.69 level then we’ll have far more consequential technical discussions by chartists than if we just had an intra-day violation.  So far today’s intra-day low before 3:00 PM EST was $24.45.

Jon C. Ogg
July 28, 2008