Are Low-Volume Rallies here to stay ?

[OAC]

The volume on daily rallies from the Aug 16 low has benn rather poor except
a couple days inspired by the Fed. Now we are approaching 90% retracement
back to the summer high. Does the low-volume phenomena means we will
have serious trouble breaking the old high

[Soultrader]

Interesting you mention that. Volume has been low here on the Nikkei as well with choppy price action. Due to the lack of swings at the moment, its been all program buying/selling, arbitrage, etc... Even the trading day following the fed rates, volatility shrunk and volume was extremely low.

The sad part is that the Nikkei is the laggard across most global markets. The Nikkei is roughly at the 50% retracement mark since the credit crisis crash.

[Reaver]

Wouldn't a low volume rally really just be a range extension that would more than likely find rejection, and therefore a probably reversion to value?

[TinGull]

Spoken wisely young one....very wisely....

[Reaver]

ha ha Thanks-

Nate aka Grasshoppa

[OAC]

	Quote:	Reaver
	Wouldn't a low volume rally really just be a range extension that would more than likely find rejection, and therefore a probably reversion to value?

Was last Thursday's sudden collapse in the afternoon hours a sign of exhaustion and attempted reversion to value ? If so, where would the value be ?

[Reaver]

Forgive my ignorance, but what market are you referring to? I'll look into it....

[OAC]

ES, YM, and NQ

[OAC]

or Equity Symbols: SPY, DIA, QQQQ
Free Intraday Charts on www.bigcharts.com

[Reaver]

I can't get a volume profile up from where I am...when I get home tonight, I'll pull up the symbosl on my charts and take a look. Thanks for the info. I am interested to see this myself.