Volume Equals Trust

This market rally looks great if you just look at the price action. However, the light volume tells us the conviction is low. Much of this bounce is short covering and not aggressive buying.

PRE-OPEN MARKET COMMENTS FRIDAY – The market has been able to grind higher and preserve its gains the last few weeks (no retracement). Yesterday it broke through a D1 trendline and it is within striking distance of horizontal resistance at SPY $417.50. The volume has been light the last few weeks, but it did improve yesterday.

Daily Bulletin Continues...