The last couple of days I’ve published some bullish studies that showed Nasdaq breadth data and VIX action were indicating further rises. The market followed up by meeting the objectives of these studies very quickly. Today I’ll mention what’s NOT so great about this rally – volume. On Friday NYSE volume came in low. While it rose some Monday, SPY volume faltered. It triggered a couple of bearish studies that were identified by the Quantifinder. I’ve linked to those studies below.

This first one looked at declining volume on a streak of higher closes.
https://quantifiableedges.blogspot.com/2009/09/spy-rising-while-spy-volume-declines.html

The second one looked at 20-day volume lows when the market is in the upper end of its range.
https://quantifiableedges.blogspot.com/2009/04/is-buying-drying-upagain.html

So while other indicators have been positive, volume is currently the squeaky wheel.