BOGUS RALLY on HALF VOLUME?
- Thread starter dsq
- Start date
Right On... Yup... Yes Sir - Bear Ralley, but the volume for the SP500 Index stocks and the ES futures were quite strong...
and TODAY we are pulling back today on very light volume...
so...
we may have a little more bear market rally to go...
<img src="http://www.enflow.com/p.gif">
DSQ,you are right on,I'm surprised more people didn't talk about the low volume.
I noticed it all day yesterday.
I noticed it all day yesterday.
From IBD:
"Stocks Notch Big Gains As Fed Cuts Rates, But Volume Finishes Surprisingly Low"
{some excerpts}
Riding some of the biggest gains in months and with the news of an interest rate decision, you'd have expected volume to swell. Instead, trading levels disappointed.
Nasdaq volume eased less than 1% compared with Monday's level. NYSE turnover fell 5%.
Tuesday's big gain on Day 6 of the Dow's rally attempt would have signaled a follow-through day. But lighter volume prevented such a rally confirmation from happening.
Go beyond the flashing headlines and you'll find a trading session that proved lacking in many ways.
As you can see in today's Market Pulse, few leading stocks marked significant price gains in higher volume, especially given the size of the market's overall move.
A lot of that shortfall is due to a lack of fundamentally sound stocks holding above key support levels.
When the market enters a harsh downtrend, most stocks will correct, often forming new bases. Whether or not a follow-through occurs, this market still has work to do to generate a fresh batch of leaders.
pS
Hence the nasty pullback today. I mean if you want to bottom fish for banks - good luck. We know how that has been working out.
And if you believe a one-day rally puts in a bottom, you don't know jack.
When institutions start putting money back into the next new market leaders, then and only then can we expect a new bully rally to have any lasting impression.
For now expect more volatility, headline attention-grabbers, and fundamentally sound stocks completing bases.
We could go up from here, but we could make a new leg down. Soon enough this sideways action will resolve itself.
pS
"Stocks Notch Big Gains As Fed Cuts Rates, But Volume Finishes Surprisingly Low"
{some excerpts}
Riding some of the biggest gains in months and with the news of an interest rate decision, you'd have expected volume to swell. Instead, trading levels disappointed.
Nasdaq volume eased less than 1% compared with Monday's level. NYSE turnover fell 5%.
Tuesday's big gain on Day 6 of the Dow's rally attempt would have signaled a follow-through day. But lighter volume prevented such a rally confirmation from happening.
Go beyond the flashing headlines and you'll find a trading session that proved lacking in many ways.
As you can see in today's Market Pulse, few leading stocks marked significant price gains in higher volume, especially given the size of the market's overall move.
A lot of that shortfall is due to a lack of fundamentally sound stocks holding above key support levels.
When the market enters a harsh downtrend, most stocks will correct, often forming new bases. Whether or not a follow-through occurs, this market still has work to do to generate a fresh batch of leaders.
pS
Hence the nasty pullback today. I mean if you want to bottom fish for banks - good luck. We know how that has been working out.
And if you believe a one-day rally puts in a bottom, you don't know jack.
When institutions start putting money back into the next new market leaders, then and only then can we expect a new bully rally to have any lasting impression.
For now expect more volatility, headline attention-grabbers, and fundamentally sound stocks completing bases.
We could go up from here, but we could make a new leg down. Soon enough this sideways action will resolve itself.
pS
NYSE VOLUME WAS under 2 billion compared to average of 4 billion....For market vol ,NYSE is the one and only vol indicator with any significance.
When measuring market i wouldnt find any significance to any index volume like sp100,500...its just too myopic and exclusionary.... certain indexes are heavily weighted in certain sectors-like sp 500 earnings is 25% derived.