Today’s Chart of the Day is now available for members.
As stocks have rallied off their recent lows from October, we’ve heard a number of comments from investors regarding the lack of volume accompanying the move. These critics aren’t wrong. In the four trading days since the 10/8 closing low, volume in SPY has come in below its 50-day moving average by an average of 18%, and there has only been one day of those four where volume was actually above average. The day isn’t over yet, but volume so far is tracking below average again even as the S&P 500 is up over 1%.
Does low volume matter, and if so how much should we be worried? In today’s Chart of the Day, we look to shed some light on that question. To read this report and access everything else Bespoke’s research platform has to offer, start a two-week free trial to Bespoke Premium. You won’t be disappointed!