Whenever there is a low voiume day, or bond market is closed as today, the market always seems to go up. Why is it I never see a low volume dead day in the markets with the dow down 100 points or more? But when the volume is dead the sky seems to be the limit on the upside... is there a reason for this?
1) The larger traders/investors were "directed" to make sure the market closes strongly higher on a psuedo-holiday such as today. 2) Price declines are more likely to beget selling than price rallies are to beget buying thereby extending a trend. 3) Price rallies can be more vicious during bear markets, because of frantic short-covering, than in bull markets.