Although not illustrated particularly well in the above chart, it would seem that volume has declined on the S&P 500 and the other major indicies since the initial spike in volatility around the period of the flash crash. As I mentioned in a previous post, the market is trading in an apathetic fashion with little conviction in either direction. Volume has been very low in general, declining with each successive leg down since the end of April. Consequently, I'm not convinced we're going directly into the abyss as the daily headlines would suggest. I think, September will be an interesting month for the market.
If you like this article and/or others in this blog feel free to subscribe via e-mail or RSS feed located on the right side of the page.
Thanks,
Shawn
