Volume Disappoints Again

Last week I looked at the extremely light volume on the Nasdaq rally and suggested it had bearish implications. The plunge came soon after. Monday’s rally was also suspiciously light. This time the setup occurred in both the Nasdaq and the S&P. Below are the stats for the S&P:

Volume action continues to disappoint. I’d be surprised to see a reaction as negative as last week, but volume is suggesting that perhaps buying enthusiasm isn’t as strong as would appear based on price alone. A pullback may likely be in order in the next few days.