Volume By Price Analysis for S&P500

Today we're looking at Volume in the S&P500 broken down by price ranges. As we often do, we'll use the ETF $SPY to try keep things simple. This volume by price indicator allows us to use high volume price points to find potential support and resistance levels in the market. By looking for areas with heavier volume, we can find prices where there is an elevated level of interest from market participants. These levels are representative of former supply and demand equilibrium.

Take a look at where the most $SPY shares changed hands over the last 2 years:

This key resistance area from 2011, where all of those shares were traded, was finally taken out early this year. Now on its first retest, this former supply zone would be a logical area for some demand to be found. Remember, there is memory and wisdom in price.