July 12th 2010
Stocks Rally On Declining Volume
Today was a quiet day in the market as can be seen by the lack of volume. Volume has been declining ever since we bottomed on July 1st which may prove to be somewhat bearish. Usually you want to see a rally accompanied by expanding or heavy volume to confirm an upmove.
Right now the S&P is approaching the .618 retracement level where it wouldn’t surprise me to see some selling enter the market. That’s my technical take on the market but what it really comes down to is earnings. Many stocks will be reporting earnings over the next few weeks which is really going to be the catalyst behind the next move in the market.