Volume in the Doldrums

While things typically quiet down during the summer, the pace of volume this year has been downright anemic.  Using the S&P 500 tracking ETF (SPY) as a proxy, the 50-day average dollar value of volume in the ETF has declined by 54% since its peak last Fall.  It is also currently at its lowest level since the S&P 500 peaked in October 2007.  While part of this is attributable to the decline in prices, the dollar value now is lower than it was in early March, even though prices are 30% higher.

 

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Comments

[Curtis Timm]

Above tracks dollar volume. Since shares were much higher earlier in reference period, it looks like the share volume is not that much changed--only the dollar amount.

[Gold Stock Trades]

This was the exact topic of my post on June 6,2009. Volume not confiming rally.

Be Prepared to Short

[Gold Stock Trades]

Here is the link from 6/6/09.

http://goldstocktrades.wordpress.com/2009/06/08/buyers-beware-major-resistance-be-prepared-to-short/