With the S&P 500 down 5% from its May 8th high, the debate over the sustainability of the rally off March's low has intensified. Is the market in a pause that refreshes or is it in the early stages of the next leg lower? If volume is any indication, the market's recent churning is of little concern at this point. As shown in the chart below, since the S&P 500 peaked on May 8th, volume in S&P 500 stocks has been above average on only one day (5/20). This contrasts to the volume from March 9th through May 8th where the daily volume was higher than average on 24 of 43 days (56% of the time).
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