Technically Speaking: A Bull Market In Complacency

by Lance Roberts
Real Investment Advice

On Monday, the markets hit new “all-time highs.” That’s the good news.

The bad news is that such is occurring on a rapid decline in volume as shown in the chart below.

[…] While volume by itself is not a great indicator from which to manage money by, it does lend credence to the level of participation in the market’s advance. Volume, like volatility which we will discuss in a moment, is most useful in denoting turning points in the market. Historically, volume tends to begin increasing just prior to, and during, a market decline.

While declining volume does not suggest the current advance is over, it is worth paying attention to when it turns higher.

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