Volume in the stock market shows commitment on behalf of institutional investors. The prior 2 days volume underlines the potential weakness of this rally in the stock markets around the world.
The Nasdaq finished with a gain of 1.86% while the SPY rallied 1.70%. Both closed at or very near their intraday trading highs, this a sign of support. However,the past two rally days are on much lower volume than the two previous down sessions. This is not the pattern you would like to see if you are a bull. Take into consideration the age of this Bull market.
The Nasdaq still has resistance both it’s 50 day moving average and 200 day moving average, which are very close together. The SPY has cleared it’s 200 day moving average but remains below it’s 50 day moving average. Honestly this is a very choppy and hard market to trade. Personally I trade stocks and a large basket of futures contracts. I strive to make myself available for opportunities and trends. It is never easy and probably most of the time just grinding away. Trend Following is a marathon.
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