Volume has contracted dramatically this week as the price range has narrowed. As Thursday came to a close, Bank of New York's pattern took on a more bearish tone. Shares broke below the lower trend line of its bull pennant as well as its 50-day moving average. Although selling pressure remained light the price action was fairly damaging.
All of this activity without any headway indicates that June could be a pivotal month. Eight of the 11 above-average volume sessions have closed to the downside. This is quite the opposite of the action in February, when Bank of New York was beginning a powerful bull run after January's deep selloff.
For Bank of New York bulls, a bit of patience in the near term will likely mean lower entry levels. A deeper pullback is certainly possible, but at this point, it is too early to make that prediction.