Low Volume Rally

Discussion in 'Technical Analysis' started by Aaron Copland, Nov 4, 2008.

  1. The last 4 days have me a little worried about this rally. The volume in SPY has been tapering off as we move higher.

    The seasonal time of the year has me optimistic about a move up. I am looking for a pull back and want to see what that looks like.
     
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  2. Aaron;
    yea, that volume is suspect. However it's probably for real anyway in the MOO[ag sector], since they were market leaders on the upside.Some parts of real estate market are holding up nicely.

    Wouldnt be suprised if the indexes,[SPY.....]tested monthlyhighs;
    but its still a bear market.

    But even market leaders can get weak quickly;
    much more so, for averages in a bear trend, bear market.:D
     
  3. Holiday doldrums may kick in sooner than normal this year. Volume could really drop off. Maybe there can be a 50% retracement of the move from ~$85 up to ~$100. We'll see. :)
     
  4. volatility has tapered off as well thats why the volume is down, we are still at higher volume then earlier in the year, so i am not surprised that volume is tapering off and am actually happy if vix drops down below 40 maybe even 30(thats a long shot), that would imo provide much needed stability because this rally has HYPE written all over it.
     
  5. Seems everyone on the street knew about Wells Fargos 12 billion dollar stock offering yesterday.

    Volume was light on todays selloff. I think as long as we hold 920 on the SP500 we will be ok.

    This pull back is healthy, so far.
     
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