This is the lightest volume day in quite some time. Volume this week is very light in comparison to last week. A heavy volume sell off followed by a light volume retracement is not very bullish.
How do you figure? The fact is that pattern is VERY bullish. Long's puked lower, shorts set up lower and now there isn't DICK for sale unless you feel like paying up.
I agree with this for the most part. I also have a hard time trusting a bounce/rally on declining volume as well. If the participation isn't there its unlikely to hold up. The only problem is the pace of the bounce is good and the volume can start to come in at any time to give confirmation.
Volume is overrated. Price action is the key. If you look at just price action, you can usually tell how much volume there is. More volatility = more volume in most cases. less vol less volume. Decrease in volatility means people are getting complacent again. Longs might panic buy thinking bottom has been hit and ram it up tomorrow or Friday, but we're in a bear market. Its only just starting to get interesting.
You sure we're in a bear? You want a bear? Natural gas. This isn't yet a bear confirmed. Not until we make lows below 1370. The only thing that makes this look bearish was the fade at open. But like others say - once the sideliners start jumping in, that fade will stop. It will once again be a bull.