With the Standard and Poors 500 (S&P 500) just hitting new highs, we are beginning to hear a common concern — volume is low and this is bearish. Overall total-dollar volume is lower now than it was during the financial crisis. In fact, if volume starts to spike higher now, this will be a big warning sign.
Now that the stock market is hitting new highs, everyone’s suddenly excited about buying stocks again. Meanwhile, four years ago, when stocks were at a decade low, no one wanted to have anything to do with them.
By a variety of measures, the U.S. equity market is poised for some kind of a Market Pullback, but that isn’t necessarily a bad thing — a fact that underscores the kind of momentum driving stocks these days.