This is what you want to be seeing in a rally – sort of.
We are seeing the markets close near their highs and volume is light on the down days. While it sounds like a broken record, volume is also light on the up days (which makes me slightly uncomfortable).
Evidence that it doesn’t really matter if volume is light can be seen in the February to April rally. Volume only started picking up as the rally ended (Hint Hint).
Here’s a chart of that rally:
Here we see a 15% rally on low volume with only a handful of days with above average volume. Once we start to see volume show up, it is with very bearish price action (days falling over 1% and closing near the lows).
Now, here are some stocks to check out for yourself that had nice price and volume action today (ticker in caption):
TITN - You've got to go all the way back to June of last year to find a price this high.
ANDE - Watch for resistance around $37.25.
NSIT - Great move today because it creates a higher low and therefore, a new trend. Resistance around $16.35.
RCRC - Similar to NSIT as today's move solidifies a new trend and creates a higher low.
LFUS - Cup-and-handle breakout with room to move higher.
CATM - Really nice breakout of a horizontal base into a new high.
TRW - Already up 37% in its latest rally, TRW added another 7% today breaking into new highs.
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