No volume = No Sell-off

The volume is the biggest issue for the market right now. It isn’t because there is this incredible euphoria taking place with the bulls and that as a result is just overwhelming the sellers, instead it is because there is no volume at all, and when that happens, the market tends to just drift higher. And considering the price range over the last two months, that drifting can result in some pretty impressive swings.

The only thing the bears have going for them is the fact that they got price, for a moment at least, below the June lows of 2019. However, that has quickly resulted in a another buy the dip opportunity to get price back above key support levels. 

So while the bears may somewhat have a control of the price action for today, they are not creating a sense of panic among investors to book the gains on their recent trades and go back to cash. Instead, investors are  tolerating a rare down day of late for the market, and that is evident in the lack of volume seen in the market today and the fact that Technology and Discretionary are still trading as some of the better sectors over the past week. 

Here’s my watch-list of long setups I am following: