I have heard much discussion of volume conditions in recent months, with the S&P 500 achieving all-time highs but accompanied by volume well below average levels. Does this mean the recent breakout in stocks should be suspect?
Yes and no.
Conventional technical analysis wisdom says that a healthy uptrend should be accompanied by heavier volume. This would suggest an influx of buying power as investor demand increases. But if we look at the S&P 500 over the last five years, we’ll see that the current volume predicament is actually quite normal.
You can read more over at seeitmarket.com.
RR#6,
Dave
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