Volume Continues To Collapse In Both NYSE and NASDAQ

It appeared this morning the Stock Indices were going to have a significant sell-off. However, buyers stepped in, stopped the slide, and drove prices back to the day’s highs. The problem with the current countertrend rotation we are experiencing is volume is collapsing on the SPY, QQQ, IWM, and total volume on the NYSE and NASDAQ. This occurred At the end of May and it led to an impulsive move lower to the June 17 lows. This will continue to be a countertrend move until volume increases significantly on any rally. Therefore, use caution on long positions. If Monday continues to rally above short-term resistance, breadth should be much stronger than today or there is risk of another attempted selloff.

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