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Take a look at the chart below; it is worth thinking about!

What’s fueling the rally as volume continues to decline? And what logical explanation can you derive?

12-11-09-Monthly-DJIA-w-volume-1
Source Reference: Ritholtz.com

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One Response to “ Market Rally’s While Volume Declines? ”

  1. Allen
    December 21, 2009 at 1:20 pm

    It’s more important to look at dollar volume inputted with the market motion. Obviously there’s going to be less market volume now that it has appreciated more than 50% from the low. Look at the dollar volume:

    http://docs.google.com/View?id=dz5jt2z_117fdqcmgkb

    The dollar volume has been pretty consistent since late 2007 (when the recession started). This suggests that the “force” driving the market back up is just as strong as it was driving it down.

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