Though I can easily see it, last month I started running a 21 day average of the daily trading range( atr) for all of the stocks I watch. About 18 months ago as prices fell the ATR's began to fall, another way to look at it is as prices got lower the ranges reduced which is expected, but even on stocks that have not fallen more than 20% ATR's are down. Tells me that besides a bubble in stock prices there was a bubble in volitility. Market is just changing its spots.
There are fewer traders left doing less volume. And there are going to be even fewer traders doing even lesser volume in the coming months. Our only hope is single stock futures which will hopefully debut in December. The volume in them could be out of this world. Until then PDT rules are going to crucify volume and momentum. I remember that if someone would just sneeze JNPR would run 3 to 4 dollars on the upside! Those days are long gone.
Come on guys, In this case we are not talking about 25% or 40 % reduction in volume. We are talking about tenfold reduction in the volume. Volatility is still there and that is why I can not understand this change.