On Friday, I saw what I wanted to see in the markets: massive loads of volume. What difference does volume make? It is the fuel of the market, and without it the market cannot make any serious moves of consequence.

So, now that we have seen ultrahigh volume, the plan is to watch what happens on Monday. With enormous volume and stocks finishing in the middle of a tight range, Monday’s action will tell us whether there was supply or demand in the volume. Also, Monday should give us a view on the next direction of the markets.

Here is a chart of the Dow illustrating all these points:

Click to Enlarge