Volume decreases as the market goes up over the last two weeks

The Dow is “bullish” while the Nasdaq Composite and S&P 500 have moved sideways for the last couple of months. The idea that the stock market could move into a solid bullish trend is, to me, ludicrous. 1) There is world-wide deflation exemplified by historic lows in capital expenditures and international shipping. with crude oil. prices very likely to sink into the teens. 2) It has been ten years since there has been 3% or higher annual GDP growth. 3) There are 94 million adults in the U.S. that are not part of the workforce. I think a retest of the December highs is extremely unlikely.

Volume decreased over the last couple of weeks in the stock market as the price moved up from its February 11 low. If it were truly a bullish move, volume would be increasing. The failure of both the S&P and Nasdaq Composite to move decisively above their previous highs on February 11 is also a sign of weakness.

Here is the graph of the S&P 500:

sp500

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