Big day in the markets today as the S&P 500 and Dow both breakout above previous resistance. Conversely, the Nasdaq is still below the resistance level.

We are currently in an uptrend, but the volume is just not convincing in any of the major indexes for my to believe that we will see a major upside.

I talked about an inverse head and shoulders the other day, here is an updated chart that shows a shakeout and breakout on the end of the pattern:

The volume has been largely below average for the last couple of months.

What you want to see is increasing volume on the days that finish near the high. We aren’t getting that. We have only seen 4 days where prices closed near the highs of the day and volume was up from the previous day. On top of that, none of those days had above average volume.

To me this signals a lack of professional conviction in a bull market and without professional support, no trend will hold up and make significant gains.

Another aspect that has me doubting is that the Nasdaq hasn’t moved above resistance yet. The Nasdaq has been a leader of the exchanges so I would have liked to see it move more.